What's moving markets today: Live updates - CNN

Consumer price inflation for April stood at 2% year-over-year -- ticking up from 1.9% to match the Federal Reserve's inflation target, but undercutting expectations for 2.1% inflation.

President Donald Trump, who has been vocal about his wish the central bank would lower interest rates to stimulate the economy, called the CPI release "really good, very low inflation" in a tweet.

Still, market expectations and presidential hopes for an interest rate cut might be misplaced, according to James Smith, developed markets economist at ING.

According to Smith, the strength in wage growth will gradually put pressure on inflation as the tightness in the job market means companies are increasing pay to retain staff.

Investors are currently pricing at least one rate cut over the next 12 months, but despite the latest increase in trade uncertainty, we think this is unlikely to materialize as things stand. Given the robust activity story, inflation backdrop and recent improvement in financial conditions, we think it is more likely that the Fed remains on hold for the foreseeable future," said Smith

In its latest policy update, Fed Chairman Jerome Powell said a weakening in inflation was due to "transitory" factors. All eyes will now be on next month's numbers.

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https://www.cnn.com/business/live-news/stock-market-news-today-051019/index.html

2019-05-10 15:02:00Z
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