Investors, consumers, policymakers and economists have been caught off guard with just how stubborn price pressures have been to start 2024. This week was filled with bad economic news, with each day literally bringing another dose of reality about inflation.
Investors , consumers, policymakers and economists have been caught off guard with just how stubborn price pressures have been to start 2024.
Fed officials took notice of the higher readings, but did not sound panic alarms, as most said they still expect to cut later this year. Investors, consumers and policymakers — even economists — have been caught off guard with just how stubborn price pressures have been to start 2024. Stocksas the Dow Jones Industrial Average coughed up nearly 500 points, dropping 2.4% on the week and surrendering nearly all its gains for the year."Fool me once, shame on you. Fool me twice, shame on me," Harvard economist Jason Furman told CNBC this week.
It started Monday with a New York Fed consumer survey showing expectations for rent increases over the next year rising dramatically, to 8.7%, or 2.6 percentage points higher than the February survey. The outlook for food, gas, medical care and education costs all rose as well.Finally, a report Friday indicated that import prices rose more than expected in March and notched the biggest three-month advance since May 2022.
While consumer and producer price indexes captured the market's attention this week, it's worth remembering that the Fed's attention is elsewhere when it comes to inflation. Policymakers instead follow the personal consumption expenditures price index, which has not been released yet for March.
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