Analysis: With accelerating inflation, Fed Chair Warsh may need to convince colleagues that rate hikes are not necessarily required

Odaily Planet Daily News Under the influence of soaring energy prices triggered by the situation in Iran, U.S. consumer spending grew slightly in April, with the annual inflation rate accelerating to its highest level since 2023. A report released by the U.S. Bureau of Economic Analysis on Thursday showed that inflation-adjusted consumer spending rose 0.1% last month, while the PCE price index increased 3.8% year-over-year. The "core PCE index," which excludes food and energy items, rose 3.3% year-over-year.

Another set of data shows that the U.S. economy grew at an annualized rate of 1.6% in the first quarter, slower than the initial estimate, as inventory investment and consumer spending data were both revised downward. These inflation figures may further strengthen the calls from a growing number of Fed officials for the central bank to signal that its next interest rate move may not be a cut. New Fed Chair Warsh may have to work hard to convince his colleagues that rate hikes are not necessarily required to curb inflation expectations. (Jinshi)