EL7.AI
Central BanksUpdated×7•Originally published 23 April 2026•Updated 25 April 2026•
1 min read

Markets Await Fed and ECB Rate Decisions Amid Persistent Inflation

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Key Facts

1Monthly core PCE inflation has remained at 0.4% over the last three months.
2Surveys confirm an ongoing inflationary spike driven by energy supply shocks and fiscal stimulus.

As investors await the upcoming Federal Reserve meeting, Fed reserve balances have dropped to $2.9 trillion due to a rising Treasury General Account (TGA). Markets recorded a sharp liquidity drain linked to the tax season, occurring alongside persistent U.S. core PCE inflation at 0.4%. Adding to global inflationary concerns, Canada's headline inflation rate reached 2.4% for March, while a BoC survey indicated rising input costs and a slight upward drift in inflation expectations. Meanwhile, the ECB is expected to maintain rates at 2.00% during its April 30 meeting. Collectively, these factors signal a cautious approach by major central banks regarding any early monetary easing amid ongoing geopolitical risks.