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Stocks resume rise ahead of Fed Speak
US stocks are pointing to a higher start, resuming the recent rally after a mildly lower close on Tuesday.
Data on a Tuesday revealed that Consumer confidence ticked lower in May for the first time in six months. Concerns that rising prices have taken the edge off re-opening euphoria pulled stocks into the red although the Nasdaq closed flat.
The Fed continued to rein in inflation expectations, with move Fed speakers joining the dovish chorus. As fears of an earlier move by the Fed ease, stocks are pushing higher again today. With the core PCE deflator, the Fed’s preferred measure of inflation due at the end of the week, inflation jitters, whilst seemingly under control right now are unlikely to be going anywhere fast. A sharp rise in core PCE could make it more challenging for the Fed to defend the lose monetary policy.
U.S. Dollar Rebounds On Inflation Worries
CANBERA (dpa-AFX) - The U.S. dollar gained against its major counterparts in the European session on Wednesday, amid a pullback in European shares on growing inflation concerns and a possible policy tightening by the U.S. Federal Reserve.
Investors turn their attention to the minutes of the Federal Reserve s April monetary policy meeting, which could offer policymakers views on the recovery, inflation and potential timing of any monetary policy adjustments.
The Fed has repeatedly signaled that the recent increase in inflation largely reflected transitory factors and it intends to keep policy accommodative for some time to come.
By Reuters Staff
1 Min Read
WASHINGTON, May 18 (Reuters) - Federal Reserve Vice Chair Randal Quarles will tell lawmakers a strong economic recovery is underway in the United States, but is not yet complete.
In prepared testimony published on Tuesday, Quarles said some households and businesses remain vulnerable, although the broader economy is in the “last stretch of the return to normal.” (Reporting by Pete Schroeder; editing by Jonathan Oatis)