Last week’s headline #GDP growth looked solid, yet the rate of #inflation continues to be remarkably tame, which helped to spark another move lower in U.S. Treasury yields.
In fact, based on Friday’s quarterly data, we were not surprised to see core PCE #inflation move down to 1.55% for March, as per today’s data release.
Additionally, #consumer sentiment revised up a bit in April data from UMich, leaving it little changed from March. Longer-run #inflation expectations were unrevised at the series all-time low of 2.3%.
This week, we’re focused on Wednesday’s #Fed announcement and Friday’s #employment report, and we’re particularly interested to see #wages, which have moved moderately higher, with little indication of transmission into consumer prices.
All that underscores the fact that domestic central bank rate #policy will likely be on hold- #FedPause- for the remainder of the year.
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