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US CPI Inflation 3.36% y-o-y (consensus 3.4%) in Apr-24

- US CPI inflation in April 2024 slowed to 3.36% year-on-year, marginally on the low side of the consensus estimate.
- The Core CPI rate matched expectations by slowing to 3.6% year-on-year in April 2024. That is a welcome improvement, but it still shows excessively high underlying pressures.

Bowman - Innovation and the Evolving Financial Landscape

In Michelle Bowman's speech, she emphasizes the importance of responsible innovation in the financial system. She acknowledges the benefits of innovation, such as increased efficiency and competition, but also recognizes the accompanying risks. Bowman proposes building blocks that could help regulators become more comfortable with innovation and find ways to say "yes" more often. She emphasizes the need for regulators to understand the various dynamics and players involved in fintech innovation and highlights the importance of transparency and open communication in promoting innovation. Bowman calls for a regulatory framework that supports private sector innovators while maintaining safety and soundness. Overall, she believes that by enhancing understanding and embracing innovation, the banking system can become stronger and more efficient.


Positivity: 90
Uncertainty: 20

EA GDP Rebounds Without Productivity

• Eurostat's second estimate confirmed the EA’s 0.3% q-o-q rebound out of technical recession. That fully recovers the H2 fall, although it was partial for Germany.
• Employment growth matched GDP in Q1, extending the persistently poor productivity performance. Eastern Europe’s structural catch-up is a relatively small bright spot.
• Jobs-intensive growth is keeping unemployment at its lows even as it rises elsewhere. EA potential looks relatively impaired rather than facing tighter monetary conditions.

By Philip Rush

Cook - Growth and Change at Community Development Financial Institutions

In this speech, Lisa Cook highlights the important role of Community Development Financial Institutions (CDFIs) and the challenges they face. CDFIs play a crucial role in providing financing and support to underserved communities and individuals. They offer customized products and services and are especially important in the current tight credit environment. The CDFI industry has experienced significant growth in recent years, with a rise in the number of certified CDFIs and total assets. However, CDFIs still face challenges, including the need for long-term sources of capital, the increasing cost of lending, and difficulties in hiring and retaining staff. The Federal Reserve System supports CDFIs through various means, including research, regulatory activities, and providing funding opportunities.


Positivity: 85
Uncertainty: 40