Inflation may have tumbled from multi-decade highs on both sides of the Atlantic, but progress has stalled in the United States, with the Federal Reserve now expected to start cutting interest rates well after its European counterpart.
Cos we have Biden and the democrats running the show. It’s not a bug, it’s a feature.
Inflation may have tumbled from multi-decade highs on both sides of the Atlantic, but progress has stalled in the United States, with the Federal Reserve now expected to start cutting interest rates well after its European counterpart.
The European Central Bank (ECB) looks set to start cutting interest rates in June, three months before the Fed is forecast to do the same, based on market expectations.
Unlike the ECB’s preferred gauge, both the PCE and the CPI include owner-occupiers’ housing costs — essentially a measure of how much money you could earn from renting out your home and hence forego if you live in it.
When using a different measure that, among other adjustments, strips out those hypothetical housing costs, MacAdam finds that core inflation rates — which exclude energy and food prices — have been “very similar” in the United States and Europe over the past six months.
Despite preliminary data Thursday that showed weaker-than-expected US growth in the first quarter, Treasury Secretary Janet Yellen told Reuters that the economy was still “firing on all cylinders.”
Both the United States and the eurozone are grappling with labor shortages, which is forcing employers to hike wages in order to attract and keep workers and fueling inflation in the services sector, he noted.
The original article contains 895 words, the summary contains 212 words. Saved 76%. I’m a bot and I’m open source!
This is the best summary I could come up with:
Inflation may have tumbled from multi-decade highs on both sides of the Atlantic, but progress has stalled in the United States, with the Federal Reserve now expected to start cutting interest rates well after its European counterpart.
The European Central Bank (ECB) looks set to start cutting interest rates in June, three months before the Fed is forecast to do the same, based on market expectations.
Unlike the ECB’s preferred gauge, both the PCE and the CPI include owner-occupiers’ housing costs — essentially a measure of how much money you could earn from renting out your home and hence forego if you live in it.
When using a different measure that, among other adjustments, strips out those hypothetical housing costs, MacAdam finds that core inflation rates — which exclude energy and food prices — have been “very similar” in the United States and Europe over the past six months.
Despite preliminary data Thursday that showed weaker-than-expected US growth in the first quarter, Treasury Secretary Janet Yellen told Reuters that the economy was still “firing on all cylinders.”
Both the United States and the eurozone are grappling with labor shortages, which is forcing employers to hike wages in order to attract and keep workers and fueling inflation in the services sector, he noted.
The original article contains 895 words, the summary contains 212 words. Saved 76%. I’m a bot and I’m open source!