Previous Trading Days Events 12.06.2024

Yesterday, the U.S. inflation data showed cooling shaking the markets as the monthly and yearly inflation figures were unexpectedly lower. However, inflation likely remains too high for the Federal Reserve.

Excluding the volatile food and energy components, the CPI climbed 0.2 in May, less than Aprils 0.3 rise. The core CPI increased 3.4 yearly, the smallest 12month gain since April 2021, after a 3.6 advance in April. Inflation continues to run above the U.S. central banks 2 target.

Peter Cardillo, Chief Market Economist, Spartan Capital Securities, New York

These numbers show inflation is beginning to move in the right direction, I dont know if the Fed will take todays numbers into consideration but obviously its a comforting number for the Fed and the markets.

Source httpswww.reuters.commarketsusviewflatusmaycpiboostsconfidencethatfedreininginflation20240612

The Federal Reserve held interest rates at a 23year high while scaling back its estimate of rate cuts this year to one from three. The central bank kept its benchmark interest rate in a range of 5.255.50 completing its twoday policy meeting.

Fed officials now see a median of four additional rate cuts happening in 2025. That is up from a prior forecast of three.

The 2024 outlook for inflation, sees prices end the year at 2.8 from 2.6 previously as measured by their preferred inflation measure the core Personal Price Expenditures PCE index. 

FOMC statement…