Lack of Inflation Could Mean no Fed Hike Soon

Import and Export Prices (March 2015) 

 

– Export Prices month/month +0.1%. Previous was -0.2%.
– Export Prices year/year -6.7%. Previous was -5.9%
– Import Prices month/month -0.3%. Previous was +0.2%
– Import Prices year/year -10.5%. Previous was -9.4%.

Inflation is not happening and consequently there is no present pressure on the Federal Reserve to raise rates.  As I have said here before the most important number we should look at is the US$/Euro exchange rate.  Raising rates would strengthen the dollar and hurt the economies of the Europe at a time when they do not need more hurting.