The Rude Inflation Wake up Call: US CPI was a nightmare by steveinnes123 inflation cpi usa
Just education services were negative at -0.1%. The Fed's policy is influencing financial conditions- the housing market is slowing in terms of mortgages written and sales volume dropping, but that is not yet hitting inflation data where the housing component was still up 0.8%. needs to see the non-energy sectors of the economy slowing - i.e., those segments it "should" be able to influence.
The immediate reaction in markets to the hot CPI print was to worry the Fed would be forced into a more aggressive rate path that would end up hitting growth much harder. A string of central banks beating market rate hike expectations last week fostered concern around a 'hard landing' and has weighed on risk, with equities tanking and the USD aggressively bid in tandem. Hence the safe-haven USD was again considered the cleanest dirty shirt in the laundry basket, especially after US front-end rates went through yet another "horrific for risk" Fed hike repricing. The next three meetings are now pricing 54.6bp, 59.
In summary, Fed tightening expectations hit fresh highs. Clouds are forming again on the China Covid reopening horizon. The market remains sensitive to headlines and vulnerable to positioning imbalances as investors' willingness to buy the dip remains low, and liquidity remains challenging. The approach of the peak US driving season is keeping the focus on tight global oil and product markets, and Brent remains near the top of the recent range despite the concerns about China and recession. Indeed,The precious metal saw some volatility following the US CPI print.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gold Price Forecast: XAU/USD moves firmly to near $1,880 despite soaring hawkish Fed betsGold price (XAU/USD) is oscillating in a narrow range of $1,868.92-1,879.25 in the early Asian session despite mounting bets on an extreme hawkish sta
Read more »
At busy LA port, Biden calls out oil companies, highlights inflation fightSpeaking at the busy Port of Los Angeles on Friday, President Joe Biden highlighted his effort against record-high price increases and his attempts at easing supply chain backlogs as inflation rose to its highest level in decades last month.
Read more »
Gold Price Forecast: XAU/USD eases from $1,880 hurdle on strong USD ahead of FedGold Price (XAU/USD) pulls back to $1,874, after rising to the highest levels since May 09, during Monday’s Asian session. The precious metal’s latest
Read more »
Weekend reads: New ideas for retirement planning and enjoying financial freedomDelve into our top 10 Weekend Reads, including: how inflation has gotten even uglier, as well as more Best New Ideas in Retirement and a look at the pending housing slowdown.
Read more »
Trauma Surgeons Call for Gun Reforms in Wake of Mass ShootingsMedical professionals say many patients cannot be saved when their injuries are caused by military-style rifles.
Read more »