US Trade Deficit Widens in March to $60.3 Billion

Summary

Michael McKee reports March US trade deficit at $60.3 billion, slightly wider than expected. He discusses implications for GDP revisions, supply chain price pressures, and Fed policy expectations. The data comes ahead of ISM services and JOLTS releases.

• US trade deficit widened to $60.3 billion in March, slightly above consensus.
• Imports rose 2.3%, exports increased 2.0% month-over-month.
• The data may lead to a revision of first-quarter GDP estimates.
• McKee notes price pressures in hard goods tied to shipping disruptions.
• Second-round inflation effects from supply chains are not yet realized.
• New York Fed President Williams sees inflation falling rapidly later this year.
• Williams believes the Fed is united on rates but guidance remains weak.
• Upcoming ISM services and JOLTS reports are key for market focus.