Confusion over US interest rates
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Mixed signals on the US economy yesterday left analysts unsure about whether or not the Federal Reserve will raise interest rates when its Open Markets Committee meets next week. Consumer prices increased by only 0.1 per cent last month, but the underlying increase was a bigger than expected 0.3 per cent. Higher prices for clothing, health care and housing were behind the rise, which took the core inflation rate up to 2.7 per cent from 2.5 per cent in March. The headline inflation rate dropped to 2.5 per cent from 2.8 per cent because of a decline in energy prices.
Against the slightly disappointing inflation figures, industrial output was unchanged in April, following big rises in February and March. The rate of capacity use, a figure monitored closely by the Fed, fell slightly to 83.4 per cent. However, the Fed said a strike caused more than half of a 6.8 per cent fall in car and truck manufacture in April. Excluding motor vehicles, output was up 0.3 per cent compared to a 0.6 per cent increase in March.
"The key to next week's decision is the Fed's view of the likely pace of growth in the second half of the year," said Ian Shepherdson, an analyst at HSBC Markets in New York.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments