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Iran War Keeps Fed’s Inflation Gauge Above Inflation Target

  • The Commerce Department reported the personal-consumption expenditures price index climbed 0.4% in April, a slower pace than March.
  • The PCE price index is up 3.8% over the past year, remaining above the Federal Reserve’s 2% target rate.
  • New Fed chairman Kevin Warsh faces a complex scenario of combating higher inflation while President Trump prefers lower interest rates.

 
BOE Can Tolerate Inflation That Is Temporarily Above Target, Gov. Bailey Says

  • Bank of England Gov. Andrew Bailey said the central bank can tolerate temporary inflation above its target due to the weak economy.
  • Bank of England Gov. Andrew Bailey said the central bank already tightened policy by ruling out expected rate cuts.
  • Investor expectations for Bank of England rate cuts shifted to increases, raising U.K. government bond yields and borrowing costs.
Some ECB Officials Were Open to Rate Rise in April

  • The European Central Bank revealed some rate setters were prepared to raise borrowing costs at its April meeting.
  • The ECB’s governing council left its key interest rate unchanged at 2% during the April meeting.
  • Investors expect the central bank to raise its key rate to 2.25% on June 11 due to inflation and energy cost worries.
U.S. Jobless Claims Rose Last Week

  • U.S. jobless claims rose to 215,000 in the week ended May 23, an increase of 5,000 from the prior week’s revised level.
  • Continuing claims reached 1.79 million in the week through May 16, up from a revised 1.77 million a week earlier.
  • The Conference Board’s Present Situation Index retreated by 3.2 points to 121.2, reflecting slightly lower employment perceptions.
U.S. GDP Growth Revised Lower for First Quarter

  • The U.S. economy grew at a 1.6% annual rate in the first quarter, revised down from 2%, the Commerce Department said Thursday.
  • The GDP downgrade was largely due to a lower estimate for inventory investment and revised lower consumer spending.
  • U.S. business earnings, after tax, increased 3.3% from the prior quarter and 17% from a year ago.
April Durable-Goods Orders Beats Forecasts

  • The Commerce Department said new orders for long-lasting goods rose 7.9% to $346 billion in April, a second monthly increase.
  • Excluding transportation equipment, durable-goods orders increased by a more modest 1.1% last month.
  • Shipments of durable goods rose by 0.5% in April, following a 0.8% increase in March.
SEC Proposes to Eliminate Quarterly Reporting Requirement for Public Companies

  • The Securities and Exchange Commission proposed amendments that would allow public companies the option to file reports semiannually.
  • Companies could file one semiannual report and one annual report, replacing three quarterly reports and one annual report.
  • The proposal aims to provide companies greater flexibility in choosing a reporting frequency that best serves their needs.
Trump Regulator Moves to Drop Case That Drew Ire of Winklevoss Twins

  • The Commodity Futures Trading Commission moved to vacate its prior enforcement action against cryptocurrency exchange Gemini, concluding it should not have been brought.
  • The CFTC had accused Gemini of making false statements in connection with its bitcoin futures business, leading to a $5 million settlement.
  • The CFTC cited the Trump administration’s policy to pivot from the Biden administration’s approach to the cryptocurrency industry.
Sen. Warren Asks Bilt for Data on Rocky Relaunch of Rewards-for-Rent Card

  • Sen. Elizabeth Warren requested that Bilt explain payment snafus and customer-service problems after its rewards-for-rent card relaunch.
  • Bilt rolled out new cards in February after its Wells Fargo partnership ended earlier than expected.
  • Warren asked Bilt to provide data on how many customers’ rent or mortgage payments were affected by the transition.
 

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