The Federal Reserve decided to leave the federal funds target rate range unrevised between 5.0% and 5.25%. The consumer price inflation has significantly declined in the last nine months but rates are still not restrictive enough to bring down inflation to 2%.
Consumer price inflation declined in May reflecting lower energy prices and weaker food price inflation but rising housing costs continue to fuel overall inflation.
Employers in several sectors and industries continued to expand payrolls at elevated levels despite the rising interest rates and looming economic slowdown.
Personal consumption expenditure price index stayed above 4%, indicating stubborn inflation forces despite multiple interest rate hikes by the Federal Reserve.
First quarter GDP was revised higher from the previous estimate after consumer spending, government spending and nonresidential fixed investment estimates were revised higher.
Existing home sales in April declined for the second month in a row and extended a recent twelve-month slide interrupted only in January. Rising interest rates and elevated home prices and lack of inventory kept buyers away from the market.
Housing starts and building permits declined and stayed at depressed levels in April compared to a year ago as higher prices and interest rates weighed on the market.
U.S. import prices rose for the first time in four months in April led by a rebound in fuel prices. Export prices increased and rebounded from the previous month's decline after agriculture and non-agriculture costs advanced.
Producer price index in April slowed to the lowest level since January 2021. The index was driven higher by portfolio management and gasoline prices and food and alcohol wholesaling and hospital inpatient and outpatient care.
