Australia Inflation Cools as Core CPI Misses Forecasts, Easing RBA Rate Hike Pressure 
European Stocks Rise as U.S. Inflation Data Eases Fed Rate Hike Fears 
BOJ Holds Rates at 1% as Inflation Outlook Eases, October Rate Hike Still Possible 
US Dollar Slips as Weak Retail Sales Reduce Fed Rate Hike Bets 
Wall Street Hits Record High as Softer Inflation Data Eases Fed Rate Hike Fears 
Japan PM Sanae Takaichi Unveils Growth Plan as BOJ Independence Concerns Lift Bond Yields 
US Dollar Holds Firm as Fed Outlook and Iran Tensions Keep Markets on Edge 
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Iran War Escalates as US, Houthis Target Ships Near Key Oil Routes 
European Stocks Steady as U.S.-Iran War, Euro Zone Data Keep Investors Cautious 
BOJ Minutes Signal More Rate Hikes as Inflation Risks Grow 
RBA Signals More Rate Hikes Possible as Australia Battles Stubborn Inflation 
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Chicago Federal Reserve President Austan Goolsbee has cautioned that recent inflation data presents a challenge for the U.S. central bank, reinforcing a cautious stance on potential interest rate cuts. Speaking in a recent Fox News interview, Goolsbee emphasized that the Federal Reserve needs stronger evidence that inflation is moving sustainably toward its 2% target before considering any policy easing.
The warning follows the latest Personal Consumption Expenditures (PCE) price index report, the Fed’s preferred inflation gauge, which showed a 3.5% annual increase in March. This higher-than-expected figure highlights persistent inflationary pressures across the U.S. economy. Goolsbee noted that inflation is now spreading into service sectors, which are typically less affected by external factors like tariffs, raising concerns about broader and more entrenched price increases.
Adding to the uncertainty are rising oil prices and ongoing geopolitical tensions, particularly involving Iran, which could further drive inflation higher. Goolsbee remarked that the current inflation trend “doesn’t look good,” signaling that the Federal Reserve may need to maintain tighter monetary policy for longer than markets anticipate.
The Fed’s latest policy meeting reflected growing internal divisions, with officials voting 8-4 to keep interest rates steady in the 3.5% to 3.75% range. This marked the most significant split within the central bank since 1992, largely driven by disagreements over forward guidance. Some policymakers pushed back against language suggesting that the next move would likely be a rate cut, underscoring uncertainty about the future direction of monetary policy.
Complicating the outlook further is an upcoming leadership transition. Kevin Warsh is ожидаing Senate confirmation to replace Jerome Powell as Federal Reserve Chair. Goolsbee expressed optimism about Warsh’s leadership while also praising Powell’s continued role on the Board of Governors, highlighting his experience and balanced approach.
Overall, the Federal Reserve faces a complex environment, balancing persistent inflation, internal policy debates, and leadership changes as it navigates the path forward for interest rates and economic stability.
