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But economists cautioned that one month of encouraging data was far from enough to set those worries to rest. Both overall and core prices rose 0.3 percent from the previous month, down from 0.4 percent in February and March. The encouraging inflation report on Wednesday is unlikely to change those expectations. The report is also likely to be met with relief at the White House after what has been a rough recent run of inflation data for President Biden. Gasoline prices rose a seasonally adjusted 2.8 percent in April from March.
Persons: , , Stephen Stanley, there’s, Sarah House, Biden, Jerome H, Powell, we’re, Blerina Uruci, Rowe Price, Jeanna Smialek, Jim Tankersley Organizations: Labor Department, Federal Reserve, Santander, White, Federal Reserve Bank of New, Fed Locations: Wells Fargo, Amsterdam, Federal Reserve Bank of New York
Several large investment firms are writing off a recession in the US in 2024 as growth holds up and inflation steadily declines, but T. Rowe Price thinks that optimism may be misplaced. While T. Rowe Price doesn't have an official call on the economy, the brightest minds at the $1.4 trillion Baltimore-based firm urged investors to be cautious at a mid-November conference. However, T. Rowe Price is skeptical that the Fed will end its fight against inflation anytime soon. T. Rowe Price found that through October, those names rose 53.2% compared to a 1.2% year-to-date return for the other 493 companies in the S&P 500. Dom Rizzo, a portfolio manager of global technology equity strategy at T. Rowe Price, agreed that the Magnificent 7's momentum won't stop just because the group is pricey.
Persons: Rowe Price, Goldman Sachs, Goldman, Jan Hatzius, Rowe Price doesn't, We're, Tim Murray, Rowe Price's, Murray, We've, Rowe, Uruci, he's, it's, Tesla, let's, Dom Rizzo, Rizzo, septet, Santa, He's Organizations: Citi, UBS Global Wealth Management, Business, Federal Reserve, Apple, Microsoft, Nvidia, Meta, AMD Locations: Baltimore, Santa Clara
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe labor market is not going to crack soon, says T. Rowe's Blerina UruciBlerina Uruci, chief economist at T. Rowe Price, joins 'The Exchange' to discuss the possibility of rate hikes this year, the strength of the labor market, and more.
Persons: Uruci, Rowe Price
The Fed is scheduled to release its policy statement and new quarterly economic projections at 2 p.m. EDT (1800 GMT). POLICY COMPROMISEData since the last Fed meeting in early May has left policymakers with a tough set of signals to read, and ample room for debate. The decision won't mean rate hikes are in for an extended pause, or - a point Powell is likely to emphasize - that rate cuts are anticipated anytime soon. The Fed's last set of quarterly projections anticipated the benchmark overnight interest rate would only move down by the end of 2024 as inflation also declined - movements that keep the inflation-adjusted rate of interest roughly the same. A true "pivot" towards looser policy was only seen occurring in 2025, when the policy rate was projected by year's end to decline more than inflation.
Persons: Blerina Uruci, Rowe Price, Jerome Powell, Powell, Howard Schneider, Paul Simao Organizations: Federal, Reuters Graphics Reuters, Rowe Price Associates, Fed, Thomson Locations: U.S
Excluding food and energy, core CPI is expected to have risen by 0.5%, or 6.5% on an annual basis. Consumer inflation may have come down slightly in October as goods prices declined, but prices for services and rents are expected to continue to climb. Simons expects core CPI rose 0.4% and that, within that, goods prices declined 0.2% while services rose 0.6% . The CPI report is widely expected to show that used car prices are falling, but rents and shelter continued to rise. "Some of it is coming from goods prices because there's a slowing in demand as we've seen in consumer spending recently," she said.
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