The Federal Reserve raised the fed funds rates by 25 basis points in a unanimous decision but also left the door open to pause future rate hikes depending on the developments in the economy and inflation path.
Private sector accelerated hiring in April as small and medium sized employers added jobs at a faster pace. Job gains were driven by increases in leisure and hospitality and healthcare industries. Wage gains moderated in April but stayed elevated.
Job openings declined in March as more employers in transportation, warehousing and utilities trimmed openings. Job cuts in construction, accommodation and food services, and health care drove layoffs to 1.8 million.
The closely watched measure of headline inflation eased in March but core inflation stayed nearly unchanged highlighting well anchored inflation and the spread of price increases from goods to services.
Compared to the fourth quarter, the deceleration in real GDP in the first quarter primarily reflected a downturn in private inventory investment and a slowdown in nonresidential fixed investment.
International trade deficit declined in March after goods imports rose faster than exports. Retail and wholesale inventories also rose from a year ago and from the previous month in March.
Durable goods orders rebounded in March after falling in February and shipments of manufactured durable goods orders rebounded after falling for two months in a row.
Retail sales declined in March from the previous month largely because of the fall in gasoline sales. Consumers are retrenching in the face of sustained high inflation and rising interest rates and elevated housing costs.
Consumer price index increased at a slower pace in March after energy prices declined on a monthly and on an annual basis. The sharp swings in energy prices failed to slow the rise in core inflation, highlighting persistent price pressures in the economy.
Despite nine interest rate hikes over the last one year, the U.S. economy continued to add jobs above its long term average in March. Job additions cooled but the report signaled labor market conditions remain tight.
