US macroeconomic data backs up Fed’s ‘patient’ approach
Lower core inflation is expected to only be temporary, Powell says
A mixed bag of US macroeconomic data has persuaded the Federal Reserve to remain patient about making changes to its policy rate.
“Economic growth and job creation have both been a bit stronger than we anticipated, while inflation has been somewhat weaker,” said Fed chair Jerome Powell in a press conference after the May 1 monetary policy meeting.
Job gains rebounded in April, averaging 180,000 per month for the first quarter this year. This is “well above” the pace needed to absorb new
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