* Bessent says core inflation cooling, rate cuts needed
U.S. Treasury Secretary Scott Bessent expressed confidence that core inflation would continue to come down despite the Iran war, and reiterated his call for the Federal Reserve to cut its key interest rate.
But two of the three major inflation indicators released for the month of March so far show core inflation, which excludes food and energy items, ticking higher. The third, average hourly wage growth, registered a cooler reading than the previous month.
* But Fed's Goolsbee says rate cuts might have to wait
Chicago Federal Reserve President Austan Goolsbee said the central bank might need to put rate cuts on hold until 2027 if fallout from the war on Iran delays inflation's long meandering journey down to the Fed's average annual 2% growth rate.
At their last meeting monetary policymakers kept the key Fed funds target rate in the 3.50%-3.75% range, although a majority projected that at least one cut to that rate could likely be appropriate this year.
* Small business sentiment sours
U.S. small business sentiment slid to an 11-month low in March as surging oil prices overshadowed benefits from low taxes, according to the National Federation of Independent Business.
The index dipped below the NFIB's 52-year average, while its uncertainty component jumped four points to 92, well above its historical average of 68. The share of survey participants expecting improved business conditions sank to the most pessimistic level since October 2024.
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