Inflation and Deflation: Impact on Markets and Consumers

The Federal Reserve left interest rates unchanged, but projections imply two further hikes, bringing rates to 5.6% by the end of this year. The S&P 500 finished nearly flat, while the Dow Jones Industrial Average dipped 0.68% and the Nasdaq Composite rose 0.4%. The People's Bank of China lowered a key medium-term policy rate for the first time in 10 months, following another cut to its short-term loan rate this Monday. New Zealand's first-quarter GDP shrank 0.1%, marking the country's slide into technical recession. Jeffrey Gundlach warned that the Fed is "going to break something" if it follows through on its expectations to continue raising rates later this year.