US Dollar Strengthens as Inflation Rises and Fed Considers Rate Hike
TL;DR Summary
US consumer spending surged 0.8% in April, beating expectations, while core PCE rose 0.4% on a monthly basis and 4.7% in the last 12 months, one-tenth of a percent above forecasts. The data suggests that the Fed may need to continue monetary tightening to restore price stability in the economy, potentially leading to another quarter-point hike at their June meeting. The US dollar rebounded while gold prices turned lower following the release of the data, as interest rate expectations shifted in a more hawkish direction.
- US Dollar Perks Up While Gold Turns Lower Following Strong Core PCE Data DailyFX
- Inflation rose 0.4% in April and 4.7% from a year ago, according to key gauge for the Fed CNBC Television
- Real Disposable Income is Flat, But Real Spending Jumps 0.5 Percent Mish Talk
- The Fed’s favorite inflation gauge just heated up — and that could mean another rate hike CNN
- AUD/USD eases from daily high after stronger US PCE Price Index, holds above 0.6500 FXStreet
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