"There's a lot of slack in the economy"
- Scott Brown, chief economist at Raymond James & Associates Inc.
Inflation in the U.S. stagnated in April, restrained by a decline in energy costs. The core consumer price index, which excludes food and energy costs, rose 0.2 per cent, showed Bureau of Labor Statistics data on Tuesday.
"There's a lot of slack in the economy," said Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida.
Inflation is "sort of at the sweet spot as far as the Fed is concerned. The recovery is on track but it's not especially strong."
Also Tuesday, the Commerce Department said retail sales in the U.S. grew by less than expected in April. Sales edged higher by 0.1 per cent from March, when they rose a revised 0.7 per cent, down from a prior estimate of 0.8 per cent.
"The economy keeps rolling along," said Chris Rupkey, chief financial economist at Bank of Tokyo Mitsubishi UFJ in New York.
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