As Liberation Day of April 2nd draws near, the market’s worry over inflation is keener than ever that makes stock market plunges downward. Of course Donald Trump said no need to worry but we should have a bird eye’s view over the subject.
Please refer the table on page 1 that 6 authorities are giving their predict on Core PCE, which is the figure that Federal Reserve concern most and would take action according to the changes. The highest expectation is 6.2% from Conference Board which is one of the most famous economic indicator of the market and the lowest is 2.1% from Cleveland Fed.
As for CPI is the figure that general public mined most, the one year expectation is 4.9% of University of Michigan which is also a very famous indicator.
When having a study on the daily items like eggs and orange juice…….etc, we can know the worry of the market is quite deep.
Let’s skip off recession and just put an eye on inflation, we can understand it would affect the interest rate. That is at first make the rate cut slower and later will change to rate increase. The only hope now is that Donald Trump is an ever changing man. After a series of plans launching out, when he found so many obstacles may change his mind. That is when tariff brings about tough economic situation he would lessen his pressure lower some tariff.