Texas Roadhouse earnings missed by $0.05, revenue topped estimates
Investing.com -- The April personal consumption expenditures (PCE) price index, an inflation metric closely monitored by the Federal Reserve, pointed to further easing inflationary pressures in the U.S., potentially offering the Federal Reserve room to ease monetary policy once more.
The PCE price index recorded a 2.1% annual increase during the month, a drop from March’s reading of 2.3%.
On a monthly basis, the index rose 0.1%, compared with a flat reading in March.
Meanwhile, the so-called "core" metric, which strips out more volatile items like food and fuel, came in at 2.5% annually, below February’s 2.6%. Month-on-month, it rose 0.1%, compared with the previous month’s flat reading.
The U.S. economy contracted at an annual rate of 0.2% in the first quarter, according to the Bureau of Economic Analysis’ second estimate released Thursday, suggesting that the Trump administration’s chaotic trade policies are hampering economic growth in the world’s largest economy.
This indication that inflationary pressures are continuing to ease could provide the U.S. central bank with the push to start cutting interest rates again.
The rate-setting Federal Open Market Committee next meets on June 18, having opted to leave borrowing costs unchanged at its first three scheduled decisions in 2025.
Markets expect that the FOMC will cut rates from their current level of 4.25% to 4.5% by December, and probably to under 4%.