- Janet Yellen, Fed Chair
US consumer prices slowed their growth in April amid weak gasoline prices, according to the Labor Department. Consumer price index climbed 0.1% last month after rising 0.2% in March. In the 12 months through April, consumer inflation dropped 0.2%, the largest decline since October 2009, after sliding 0.1% in March. The core CPI, which excludes volatile food and energy costs, ticked up 0.3%, the largest gain since January 2013, after climbing 0.2% a month earlier. Measured on an annual basis, the core CPI rose 1.8% following a similar gain in March.
In the meantime, Fed Chair Janet Yellen said the US central bank remained on track to hike interest rates this year, but will do so steadily, adding that she expected the world's number one economy to recover after a surprisingly soft first quarter. Yet, she highlighted once again that the move continues to be dependent on the health of the job market and pace of inflation growth. Even though, the US economy is set to rebound, it faces a number of headwinds including disappointing wage growth and high number of people who seek full-time employment. Yellen said that "it will be several years" before the Fed's benchmark rate is back to normal, which is close to 4% in an economy that is performing strongly. Most economists continue to expect the Fed to raise the fed funds rate in September, which is consistent with Fed policymakers' median forecast two months ago.
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