Economy

Inflation in the United States slowed to its lowest level in January. Wall Street and Stocks Fly By Investing.com

© Reuters.

By Alessandro Albano

Investing.com – It slowed beyond the US consensus, giving a boost to stock indices and investor hopes of a Federal Reserve pivot sooner than expected.

As the Bureau of Labor Statistics showed, the CPI rose 7.7% year over year from +8.2% the previous month and less than the 8.0% expected from the consensus compiled by Investing.com.

The statistical office indicated that the reading represented “the lowest increase in 12 months since last January.”

The core index – excluding food and energy – rose 6.3% year-on-year from 6.6% in September (consensus +6.5%), while the energy index rose 17.6% with +10.9% of the food basket. These increases are all lower than those recorded in September and in the summer months.

Looking at the economic situation, consumer inflation registered an increase of 0.4% in October as before, but lower than the +0.6% estimated by economists.

After reading, it rose to +3.4%, marks +4.7%, while it rose by 2.3%. Conversely, the EPS is down more than 5% in the 3.9% region.

The domino effect in Europe accelerated to 2.3%, while in Hong Kong futures jumped to +4%.

With the Federal Reserve raising interest rates by 75 basis points for the fourth time in the last meeting, Derivatives on Federal Funds For the December meeting, they now point to a slowdown in rallies to 50 basis points with an 85% chance.

On the other hand, it is true that at a press conference, Governor Jerome Powell actually tore up the bank’s statement that the Fed “will slash interest rates at a higher level than expected.”

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In the policy statement, a point was introduced that was interpreted as pacifist. In determining the pace of future increases, the committee will take into account the “cumulative tightening of monetary policy, the delays with which monetary policy affects economic activity and inflation, and economic and financial developments,” the statement said.

A paragraph that did not appear in the September meeting announcement that hinted at a possible slowdown in rates, or the Federal Reserve’s pivot, is on the horizon as it took into account the cumulative effect on the economy of scheduled increases in recent months.

“Despite the positive data, the Fed will keep the US economy in check for now, meaning that a straight 50 basis point rate hike is possible, if not very likely, next month,” DeVere commented. Group CEO Nigel Green.

“However, today’s inflation data is likely to excite markets as it means that the Fed is now likely to signal that it will slow the pace of rate hikes in the coming months,” he added.

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