More bad news for Americans.
Consumer prices closely watched by the Federal Reserve showed inflation accelerating in April.
The personal consumption expenditure (PCE) price index rose 0.4 percent in April, up from the 0.1 percent rise a month earlier. Economists had forecast a milder increase to 0.3 percent.
Compared with April of last year, the PCE price index is up 4,4 percent, a faster annual pace of inflation than the 4.2 percent recorded in March.
The Federal Reserve has hiked interest rates ten times over the past year and has been shrinking the bond portfolio built up during its quantitative easing programs in the aftermath of the financial crisis and during the pandemic.
Many Fed officials have indicated that they are closely watching incoming data to decide whether to implement another rate hike at the next meeting in June or to put hikes on pause, skipping a meeting or two to assess how earlier hikes are affecting the economy.
Get more information on this story HERE >>>