U.S. Economic News
June 10, 2020
U.S. Economic Indicators
Consumer prices fell 0.1% in May (up 0.1% from a year ago) after falling 0.8% in April. The “core” CPI, which excludes food and energy, fell 0.1% in May – marking an unprecedented three months of consecutive declines – and is up 1.2% from last year. BLS Report
U.S. News
Ahead of today’s FOMC meeting, the Wall Street Journal reports that the Fed is widely expected to reaffirm their intent to keep interest rates near zero for the foreseeable future, and to provide clarification on current Treasury purchasing policies. The central bank is also set to release projections for interest rates, unemployment, and inflation after forgoing the quarterly projections in March. WSJ
The Financial Times reports that the OECD expects a 6% contraction in the global economy by the end of 2020, cautioning that a second wave of coronavirus could knock 10% off output by the end of 2021 compared to previous projections. While the OECD notes that the pace of economic recovery will vary by country, they stress that global cooperation on treatment and vaccine development is critical to restore economic conditions and living standards to pre-pandemic levels. FT