After steadily declining for nearly a year, consumer price data to be released Wednesday will likely show that U.S. inflation remained stubbornly high in April, a sign that it might be entering a newer, stickier phase.
Even more ominously, the government's debt ceiling, and Republicans in Congress are refusing to raise the cap unless President Joe Biden and congressional Democrats agree to sharp spending cuts. If the debt ceiling isn't raised in time, the nation would default on its debt, a scenario that could igniteInflation has slowed sharply since peaking at a 9.1% annual rate last June. Still, many economists say the decline so far has likely been the easy phase.
The Fed and many economists closely monitor core prices, which are regarded as a better measure of longer-term inflation trends. One major driver of core inflation — apartment costs and other housing expenses — surged 8.2% in March from 12 months earlier. Most economists expect apartment rents to grow much more slowly in coming months, helping to slow inflation, as more new apartment buildings are completed., excluding energy and housing.
"The most persistent area of inflation is in core services excluding housing, which has been running around 4.5% since last August," John Williams, president of the Federal Reserve Bank of New York, said Tuesday. Williams, who is close to Powell, is an influential voice in Fed policy. Most economists think the rate hikes will, over time, have their intended effect. Yet most also worry that the hikes will weaken the economy so much as to tip it into a recession sometime this year.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Americans likely saw little relief from inflation in AprilAfter steadily declining for nearly a year, consumer price data to be released Wednesday will likely show that U.S. inflation remained stubbornly high in April, a sign that it might be entering a newer, stickier phase
Baca lebih lajut »
Jenna Ortega's Comments on Re-Writing 'Wednesday' Inspired Writers' Strike SignsThe actor made headlines after saying that she would periodically start “changing lines” while working on Wednesday.
Baca lebih lajut »
Threat of severe weather reaches Colorado by WednesdayAfter a relatively calm start to the week for Colorado weather, severe storms will move in by Wednesday along the urban corridor and eastern plains. COwx
Baca lebih lajut »
Policing, race to be spotlighted in Wednesday public forum in HarrisburgHarrisburg event will feature a keynote address by Paul Butler, former federal prosecutor and author of the 2017 book 'Chokehold: Policing Black Men.' Public participation is also invited.
Baca lebih lajut »
D.C.-area forecast: Cloudy and much cooler with rain today, then a wonderful WednesdayWarm weekend ahead, but could be some showers to dodge.
Baca lebih lajut »