The US’ personal consumption expenditures price index dropped to an annualised rate of 1.7 per cent in April while the core measure – the Fed’s preferred gauge which strips out volatile food and energy prices – fell back to 1.5 per cent, an even weaker reading than the same time a year earlier. Photo: Steve Chenn/CORBIS
Nicholas Spiro
Opinion

Opinion

Macroscope by Nicholas Spiro

Soggy US inflation numbers could prove a spoiler for the Fed’s ‘normalisation’ policy

At the start of the year, the stars seemed to be aligning for the Fed. But now the conduct of US monetary policy has become a lot more uncertain

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The US’ personal consumption expenditures price index dropped to an annualised rate of 1.7 per cent in April while the core measure – the Fed’s preferred gauge which strips out volatile food and energy prices – fell back to 1.5 per cent, an even weaker reading than the same time a year earlier. Photo: Steve Chenn/CORBIS
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