The communication from Fed policymakers on the interest rate
outlook is expected to have remained hawkish as inflationary pressures in the
first three months of this year accelerated.
However, the Consumer Price Index
(CPI) data for April declined as expected due to lower prices of utility gas
piped services, and used car and trucks. Fed policymakers are expected to have
avoided supporting for further policy-tightening.
Though the decline in price pressures has provided some relief that
the progress in the disinflation process has not stalled, Fed policymakers
remain leaned towards a restrictive policy stance for a longer period to build
confidence that inflation will sustainably return to the desired rate of 2%.
Dr. Kamaran Qader Yaqub,
Financial
Consultant at Investment Spot company.
