close video Fed is facing an inflation dilemma that will end in recession: Luke Lloyd

Ernst & Young chief economist Gregory Daco and Strategic Wealth Partners investment strategist Luke Lloyd discuss whether moderating inflation warrants the Fed ending rate hikes on ‘Cavuto: Coast to Coast.’

Inflation rose again in April despite an aggressive interest-rate hike campaign by the Federal Reserve, indicating that strong underlying price pressures are still bubbling beneath the surface of the economy – and continuing to burden millions of Americans.

The Labor Department said Wednesday that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose 0.4% in April from the previous month, much faster than the 0.1% increase recorded in March. Prices climbed 4.9% on an annual basis.

Those figures were mostly in line with forecasts by Refinitiv economists. 

Inflation remains about more than double the pre-pandemic average, underscoring the persistent financial burden placed on U.S. households and small businesses by high prices. 

Other parts of the report also pointed to a slow retreat for inflation, a worrisome sign for the Federal Reserve. Core prices, which exclude the more volatile measurements of food and energy, climbed 0.4%, or 5.5% annually.  

This is a developing story. Please check back for updates.