Fed's Preferred Inflation Gauge Unlikely to Sway Rate Hike Consensus

Key facts

• The Federal Reserve's preferred inflation gauge has been updated.
• The update is not expected to alter the central bank's view on the necessity of interest rate hikes this year.

The latest figures from the Federal Reserve's preferred inflation gauge are unlikely to sway the prevailing opinion within the US central bank concerning the necessity of raising interest rates this year. This suggests that the current economic data does not provide a strong enough signal to deviate from the established path of monetary policy tightening.