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In April, the "terrifying data" from the USA slightly exceeded expectations, and the PPI unexpectedly cooled down.
Retail sales in the USA maintained growth in the month impacted by Trump's tariffs, but there was a clear slowdown, which may raise questions about the intensity and stability of consumer spending in the coming months.
Express News | Analysis: The core inflation Indicators favored by the Federal Reserve are expected to improve in April.
Powell predicts the direction of adjustments to the MMF framework and warns that future inflation volatility may remain high.
① The Federal Reserve is conducting a once-every-five-years review of its MMF policy framework, with results expected to be released by the end of summer; ② In the review five years ago, officials were more focused on addressing low inflation and employment gaps, resulting in a policy framework that does not align with the current economic conditions; ③ Powell emphasized that the 2% inflation target will not change.
Express News | Powell: Future inflation may become more volatile, and the USA may face a prolonged period of supply shocks.
Tariffs squeeze profits of American companies; USA's PPI in April is a big "shock".
In April, the prices paid to USA producers unexpectedly dropped, marking the largest decrease in five years.
Powell's "admission of error": the old framework is no longer applicable, and the era of long-term low interest rates has ended.
The "Fed's mouthpiece" indicated that the upcoming reform of the Federal Reserve's interest rate-setting framework is unlikely to affect current decisions, but the era of "lower interest rates for a longer time" may have already ended...