The latest round of U.S. price pressures has added to the Federal Reserve’s uncertainty over whether there will be a change to its interest rate policy during its next policy meeting, Yahoo Finance reported on Saturday.
Various Federal Reserve officials stated earlier during the week that they would continue to assess incoming economic data before committing to a decision regarding whether the time has come to ease up their aggressive rate-hiking strategy in an effort to combat stubbornly high inflation.
Bloomberg Economics predicted that the core personal consumption expenditures price index – the Fed’s preferred inflation measure – would remain relatively unchanged in May. In April, the index rose 4.6% compared the previous year. On a monthly basis, the index is forecast to grow 0.3%.
Fed officials will keep an eye on several pieces of key data next week, among which is new home sales, durable goods orders, and revised first-quarter gross domestic product data.
St. Louis Fed President James Bullard and San Francisco’s Mary Daly are set to speak on Monday, while Atlanta’s Raphael Bostic and Richmond’s Thomas Barkin will follow.
Beyond economic data, the Fed will also look to the ongoing debt ceiling talks for guidance. The deadline for Congress to find a consensus is June 1.