Headline CPI Expected to Have Spiked Higher in August, but Core Rate Seen Slowing

The U.S. government on Wednesday morning will release its latest official inflation data.

Analysts will differ on the specific reasons, but surely high on the list are interest rates that give every indication of staying higher and for longer than most had anticipated.

While the Fed appears set to hold its benchmark fed funds rate steady at its policy meeting later this month, investor hopes that the central bank might begin considering cutting rates in the near future have dissipated thanks to continuing strength in the economy and inflation. Just a couple of months ago, market participants had been anticipating the first Fed rate cuts in late 2023. By a few weeks ago, those expectations shifted to early 2024. A check ofnow shows bets on the first cut rate having been pushed out to roughly one year from now.

Should it come to pass, tomorrow's decline in core CPI will be welcome to policymakers, but even a 4.3% inflation rate is more than double the Fed's 2% target. And central bankers will have a hard time claiming victory over inflation when consumers are watching prices at the pump advance with each fill-up.

Vi har oppsummert denne nyheten slik at du kan lese den raskt. Er du interessert i nyhetene kan du lese hele teksten her. Les mer:

CoinDesk /  🏆 291. in US

Norge Siste Nytt, Norge Overskrifter

Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.

The Fed doesn’t obey CPI, but still, CPI sets the toneOutlook: The big news this week will be US CPI on Wednesday and the ECB policy meeting the next day. In the US, we also get PPI, retail sales and the
Les mer »

USD/CHF holds ground above 0.8900, focus on US headline CPIUSD/CHF struggles to recover from the previous day’s losses ahead of the release of the US Consumer Price Index (CPI), treading waters around 0.8910 d
Les mer »

US CPI holds the keyOn Friday, U.S. stocks experienced minimal fluctuations, yet they closed the week with a decline of 1.5%. This dip comes as a response to the mounting
Les mer »

EUR/USD remains on the defensive above the 1.0700 mark, US CPI, ECB rate decisions eyedThe EUR/USD pair struggles to gain following the choppy action on Friday. The major hovers around 1.0710 during the early Asian session on Monday. The
Les mer »

NZD/USD reclaims the 0.5900 area amid the weaker USD, eyes on US CPIThe NZD/USD pair recovers some lost ground and reclaims the 0.5900 mark during the early Asian trading hours on Monday. The absence of economic data o
Les mer »

Busy week ahead: New iPhone, US CPI, ECB verdict, ARM IPO [Video]The S&P 500 ended last week on a meagre positive note, as the selloff in Apple shares slowed. Apple will be unveiling the new iPhone15 after the Chine
Les mer »