Overview

• March data shows personal consumption expenditures (PCE) price index rising, with core inflation exceeding the Fed's 2% target.
• Consumer spending continues to outpace income, leading to a drop in personal savings rates to their lowest since October 2022.
• Economic growth has slowed, with GDP expanding at only 1.6% in the first quarter of 2024, below expectations.
• High inflation rates and a robust labor market are putting upward pressure on wages, contributing to ongoing inflationary pressures.
• Federal Reserve likely to maintain or increase interest rates, delaying hopes for rate cuts amid economic uncertainty.