There was no reprieve in U.S. data this week for those concerned the economy is running too hot for the Federal Reserve to deliver imminent interest rate relief. Expectations for multiple rate cuts have been greatly pared back since the start of the year and this week’s data will only reinforce that.
This week’s release of U.S. Q1-GDP shows that U.S. consumers still exhibit resilience to higher interest rates. Similarly, PCE inflation delivered two hawkish surprises: goods inflation eased less than expected and services inflation continued to trend up, for an overall uptick in the recent trend in prices.If you are having trouble viewing the Weekly Bottom Line below, please click here.
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