Fed Inflation Rises in April, Rate Hikes Bet

Updated at 8:47am EDT

of federal reserveUS preferred measure of inflation Friday’s data showed inflation picked up again in April, suggesting central bank efforts to contain consumer price pressures are likely to continue into the summer.

april core PCE The price index rose 4.7% year-on-year, up from a revised 4.4% pace recorded in March and above consensus expectations of 4.6%. The core index rose 0.4% month-on-month, slightly above last month’s pace and street consensus forecasts of 3.9% and 0.3% respectively, the Bureau of Economic Analysis reported.

The Composite PCE Index rose 0.4% month-on-month and 4.4% annualized, both readings beating analyst expectations. Personal income rose 0.4% and real personal spending rose 0.8% from March, well above street expectations of a 0.4% increase, according to the BEA.

The closely tracked core PCE price index in the first quarter, one of the Fed’s favorite inflation indicators, accelerated at a pace of 5% in the first quarter, according to data released Thursday by the Department of Commerce, originally reported earlier this month. Exceeded expectations of 4.9%.

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U.S. stocks trimmed early gains following data release, Dow Jones Industrial Average futures rose 7 points in opening bell, Dow futures increased opening bell Indicated. S&P500 It can drop by 1 point.

The benchmark two-year bond yield rose 13 basis points to 4.610%, while the 10-year bond yield rose five basis points to 3.839%. The US Dollar Index, which shows the dollar’s performance against a basket of global peers, rose 0.05% to 104.022.

of CME Group’s FedWatch The 25 chance is currently estimated at 58.5%. basis point The June rate hike is up from just 17.4% a week ago, pegging expectations for a July rate hike at about 77.5% if the Fed decides to stop hiking.

https://www.thestreet.com/investing/stocks/fed-inflation-gauge-jumps-higher-in-april-lifting-rate-hike-bets Fed Inflation Rises in April, Rate Hikes Bet