News reports covering yesterday’s April report on consumer inflation emphasize that the monthly increase fell short of the consensus forecast. The cooler-than-expected gain is cited by some analysts as a factor that will allow the Federal Reserve to slow its plans for raising interest rates. Perhaps, but reviewing the annual pace of inflation and the latest estimates for GDP growth in the second quarter suggests that it’s premature to assume that the central bank is set to back off its recent plans for three or four rate hikes this year.
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ISIS still a threat ahead of Iraq’s election on Saturday: USA Today
Iran supports Syria’s right to respond to Israel’s attacks: Reuters
Oil on track for 2nd weekly gain amid rising Mideast tensions: Bloomberg
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US jobless claims remain low, sticking close to 49-year low: MW
US consumer inflation ticks up to 2.5% annual rate in April: Reuters
Bank of England leaves interest rates unchanged: Independent
US stock market rally continues with S&P 500 near 2-month high: Reuters