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What on earth is going on with gold?
Gold prices are going through the roof, and there are a lot of reasons buyers may be opting for the yellow metal. We’re breaking it down.
Another hotter-than-expected inflation report pushed US stocks lower on Wednesday
• Consumer price inflation rose in February, measuring 3.5% year-over-year, well above the Federal Reserve’s 2% target. The data were higher than expected and immediately pushed interest rate cut expectations further out, while sending the U.S. 10-year yield over 4.5%.
• Minutes from the Fed March meeting showed officials expressed concerns inflation wasn’t moving lower fast enough. They also pointed to geopolitical tensions and rising energy prices as potential risks exacerbating inflation, but still expected to cut rates sometime this year.
What to be on the lookout for today
• Wholesale inflation numbers for March.
• Weekly jobless claims.
• In earnings, CarMax will report.
Inflation rose again in March. Here’s how to make sense of it
For four straight months, inflation measures have come in hotter than expected, complicating the Federal Reserve’s job and making the market nervous about when the central bank might finally cut policy rates.
The March consumer price index rose 0.4% in March, driven by higher costs of shelter and gasoline. Year-over-year, inflation increased at a rate of 3.5%, well above the Fed’s 2% target.
So where does this leave us? Is there a chance we won’t see any rate cuts this year if prices keep rising? SoFi Head of Investment Strategy Liz Young makes sense of the CPI report.
Today’s top stories
The meatpacking industry is facing challenges and it’s turning to robots to help.A combination of labor shortages and a desire to improve efficiency is driving companies like Tyson and Smithfield to invest billions in automation, and it could be good for workers.
Read more >> Talk about money and step into your powerFormer Teen Vogue editor-in-chief Elaine Welteroth discusses pay negotiation tips on SoFi’s YouTube series Richer Live$.
Read more >> What to know if you want to move money in your retirement accountsIf you’re thinking about making a change to your IRA, know the differences between rollovers and transfers, as well as their limits and tax implications.
Read more >>Other news that caught our eye
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Wells Fargo estimates that Costco is selling $100 million to $200 million in gold bars every month.
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The United States Postal Service is proposing a stamp price increase of 5 cents, which would tie the record for the largest hike ever.
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Apple reportedly made $14 billion worth of iPhones in India in its fiscal year that ended in March as it aims to reduce its reliance on Chinese manufacturing.
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Federal regulators are now requiring some internet service providers to add labels breaking down the different costs of people’s internet service.
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A new Boeing whistleblower voiced concerns over the company’s 787 Dreamliner and Boeing 777 jets, raising safety concerns for more than 1,000 airplanes.
Financial planner tip of the day
“You may not be able to completely reform an overspending habit overnight. But by tracking your spending, setting up a basic budget, and altering some of your everyday habits, you may soon be able to gain control over your financial life, and start reaching your short- and long-term savings goals.”
Brian Walsh, CFP® at SoFi