Economy

Fed’s First Inflation Report Under Chair Warsh Shows Prices Near 3-Year High The Federal Reserve’s first inflation report under new Chair Kevin Warsh reveals U.S. consumer price growth approaching its highest level in nearly three years, prompting market reassessment of monetary policy direction. Core personal consumption expenditure (PCE) prices rose 3.1% year-over-year, up 0.3 percentage points from the prior month — the fastest pace since September 2023. Energy price volatility was a primary driver, with international oil prices surging over recent months due to ongoing Middle East geopolitical tensions, pushing up transportation and manufacturing costs. ...

China reported record-high export and import figures for April, with the trade surplus widening further, signaling economic resilience despite tariff headwinds.

UK thirty-year government bond yields rose to five point seven six percent, the highest since 1998. Rising fuel prices and political stability concerns are pushing up borrowing costs, squeezing Chancellor Rachel Reeves fiscal headroom.

US gasoline prices rose more than 30 cents per gallon in the past week, with the Strait of Hormuz closure and Iran conflict pushing energy costs higher

Bloomberg analysis suggests the upcoming US jobs report is expected to show continued labor market resilience despite the uncertainty caused by the Iran war.

The Federal Reserve is widely expected to hold rates steady at its April meeting as Iran-related risks drive inflation concerns and the potential Powell-to-Warsh transition adds uncertainty.