Fed remains cautious on cuts even as data improves

WASHINGTON - Data this week offered the U.S. Federal Reserve good news on two fronts but policymakers haven't openly shifted views yet about the timing of rate cuts investors are convinced will start this year.

In comments on CNBC on Thursday, Richmond Fed President Thomas Barkin said the April retail sales number still means spending was growing at a "good" pace even if not a "great" one, noting that firms particularly in the service sector tell him they continue to plan price increases.

Like other policymakers, however, Mester said that was not her base case, and the April Consumer Price Index report was the first in four months that arguably boosted policymakers' faith that the drop in inflation seen last year might resume and become steady enough to bring their 2% inflation target within reach.

Between now and the Fed's June 11-12 meeting, policymakers will receive just one additional report on the Personal Consumption Expenditures price index, the statistic used to set the 2% inflation target. The index rose at a 2.7% annual rate as of March, and, with many of the components of the April release already in hand, analysts expect little if any change when the new data is published on May 31.

The July meeting will be followed in August by the Fed's annual research conference in Jackson Hole, a forum Fed chairs have often used to shape public expectations about monetary policy. Jakub Porzycki/NurPhoto via Getty ImagesJust hours after Donald Trump and Joe Biden agreed to debate each other on CNN in June, the cable news network announced that the debate will be moderated by its anchors Jake Tapper and Dana Bash. The debate will take place in Atlanta at 9 p.m. on June 27, and will air live on CNN. It will be the first of at least two agreed upon presidential debates, with the second slated to be hosted by ABC on Sept. 10.

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