The resilience of the US economy and stickiness of price pressures spurred a reassessment of the trajectory of Fed policy. This sparked a sharp rise in US interest rates and extended the dollar’s advance. The somewhat disappointing April jobs report and a softer CPI report in the middle of May could signal that the interest rate adjustment is over. Federal Reserve Chair Powell played down the likelihood of the need to lift rates again, and as it was in Q4 23, when CPI moderated to a 2% annualized rate, the central bank is being prudent in both directions. The IMF identified US fiscal policy as a key to fueling ... (full story)