The consumer price index showed that annual inflation slowed to 7.7% in October, down half a percentage point from September. The extent of the slowdown surprised investors and increased confidence that the Federal Reserve will begin to slow its campaign to curb inflation via interest rate hikes.The prospect of looser money boosted stock valuations. At close, the Dow Jones Industrial Average had exploded upward by more than 1,200 points, or 3.7%. The tech-heavy Nasdaq surged by more than 6.
The Fed has raised rates by a mammoth 75 basis points at its last four meetings — a historic scale that is akin to 12 conventional rate hikes. Because inflation came in a bit cooler than predicted, it now appears likely that the Fed will only raise rates by 50 basis points at its December meeting. Some Fed presidents have begun to message that they would support the gradual lessening of rate hikes should inflation keep heading down, albeit slowly.
On Thursday afternoon, though, Cleveland Fed President Loretta Mester, while not addressing the report directly, threw a bit of cold water on investors’ optimism that rate hikes are winding down. During a webcast appearance, she reiterated that rates will need to continue to be hiked until inflation is crushed.
It's still high 7.7 % , so less spending for the holidays and hopefully we can stop ✋️ dementia Beijing Biden from raising taxes 🤔I fear unemployment is going up next year and housing market crashes?
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: MarketWatch - 🏆 3. / 97 Read more »
Source: dcexaminer - 🏆 6. / 94 Read more »