Forecasters expect a mild April Core PCE reading after the US CPI report

WSJ’s Nick Timiraos shared on X the current forecasts for the US PCE price index due in a couple of weeks. The PCE price index is the Fed’s preferred inflation measure.

These forecasts can change a little after the US PPI today and the US Import prices tomorrow. It’s certainly moving in the right direction, but unfortunately inflation is a lagging indicator.

The market is now pricing better growth ahead following the positive developments on the trade front. This is taking long term Treasury yields higher as inflationary pressures could return given that we might see a surge in economic activity as uncertainty eases.

This article was written by Giuseppe Dellamotta at www.forexlive.com.