Inflation Outlook, Consumer Spending Soars, Fed’s Surprise


1. Inflation Outlook – The 800-Pound Gorilla in the Room

2. Fed Reveals Surprising Discussion at Latest Policy Meeting

3. Household Income Surged By Record 21% in March


There was the usual mish-mash of financial news last week, some good and some bad. Equity markets weakened early last week as analysts and investors struggled to balance the strengthening economic recovery against a broad-based surge in consumer and goods prices in April.

Asset prices have been shaken by the prospect of inflation derailing the recovery from the pandemic, and potentially nudging the Federal Reserve to reverse its crisis-era zero interest rate policy sooner than expected.

On Thursday, the Dow, S&P and Nasdaq managed to snap a 3-day losing streak on news that workers filing for new unemployment benefits fell to a new COVID-19 era low, their lowest in over a year.