US Inflation data continues to shock
Both indexes show rising inflation pressure.
Analysts pointed out that the insane growth of the Fed’s balance and the money supply would eventually affect inflation. To convince the markets that the rate would remain at a minimum of 0.25% and the volume of the asset repurchase program on the Fed's balance would be preserved, the Fed repeatedly stated that it did not see inflation risks and that high inflation was temporary.
Note that the Fed monitors PCE inflation, not the inflation from the US Bureau of Labor Statistics. In April data showed the growth at 3.6% YoY, which was higher than the Fed’s projected median value of 2.4%. PCE inflation is to be published on June 25 by the BEA.
Full nameUnited States Department of the Treasury