Fed Minutes and Inflation Figures Raise Concerns
The minutes of the Federal Reserve's March meeting suggest that the organization's members are preparing for a mild recession, which they expect to be fueled by the ongoing crisis in the banking sector. the market is expecting the central bank to pause its rate hike after a final increase of 25 basis points in May. This is in response to the economic slowdown that is being anticipated, as well as the likelihood of inflation remaining under control. Looking at the latest inflation figures, in March, the Consumer Price Index (CPI) dropped from 6% in February to 5% year-on-year, largely due to the continued easing in energy prices, which soared last year as a result of the Russia-Ukraine conflict.