FX.co ★ 17.05.2021: Fed downplays inflation spike (S&P500, DXY, USD/CAD, BTC/USD)

The US stock market closed last week with confident gains of three benchmark stock indices. Earlier in the week, the US stocks encountered sell-offs for three days straight. A steep fall is considered a downward correction which came as a result of soaring inflation in April. The latest CPI report logged the highest surge in consumer prices since 2009. However, the US Fed downplays the gravity of the situation, saying that the leap in inflation was transitory. Indirectly, the Fed’s viewpoint is proven by a report released on Friday that unexpectedly showed flat retail sales in the US. So, the market calmed down and resumed its growth.