Federal Reserve policymakers got a dose of unexpectedly strong U.S. economic data on Friday that bolstered the case for further monetary policy tightening to bring down persistently high inflation.
Consumer spending surging 0.8% last month from March was good news in showing the economy is not on the precipice of a recession, but discomforting for policymakers looking for a slowdown that could ease upward pressure on prices.
And an increase in underlying core inflation to 4.7%, up from a 4.6% pace in March, underscored the less-than-steady progress on the Fed’s inflation fight. The U.S. central bank targets A 2% inflation goal.
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