2 Jun 2014
Higher inflation in US points to further tapering – Danske Bank
FXStreet (Edinburgh) - According to Jens Pedersen, Analyst at Danske Bank, recent higher PCE figures would support the ongoing QE tapering in the US economy.
Key Quotes
“Inflation climbed a bit higher in the US in April. Headline PCE inflation rose to 1.6% y/y from 1.1% y/y in March and PCE core inflation inched 0.2pp higher to 1.4% y/y in April – both in line with market expectations”.
“The development in inflation should support a continued tapering of the Federal Reserve’s asset purchases over the coming months, which was supported by a comment from Plosser on Friday, who said he was encouraged by the rising inflation”.
Key Quotes
“Inflation climbed a bit higher in the US in April. Headline PCE inflation rose to 1.6% y/y from 1.1% y/y in March and PCE core inflation inched 0.2pp higher to 1.4% y/y in April – both in line with market expectations”.
“The development in inflation should support a continued tapering of the Federal Reserve’s asset purchases over the coming months, which was supported by a comment from Plosser on Friday, who said he was encouraged by the rising inflation”.