Goolsbee says CPI discouraging, warns more bad months unacceptable
Chicago Fed President Austan Goolsbee said CPI data was discouraging and that more bad months of inflation would be unacceptable, stressing the need to focus…
European markets fell back as oil rose ahead of US CPI data, with traders awaiting inflation figures for rate-hike clues.
Key headlines:
Market snapshot:
The session was relatively quiet, with no major economic data or news releases. WTI crude extended its rally to new weekly highs, prompting a pullback in other markets. No clear catalyst was evident, although Iran's revolutionary guards said a container ship sank in the southern Strait of Hormuz after hitting a naval mine.
During the US session, all attention will be on the CPI report, particularly the month-over-month Core CPI figure, as Federal Reserve officials have focused on the monthly pace of core inflation to determine the number and pace of future rate hikes.
The probability of an October rate hike currently stands at about 21%, as traders await the CPI data before fully ruling out a hike despite pushback from Fed members. In my view, a rise to 0.3% may not lead the market to fully expect a hike in October, but a jump to 0.4% would likely do so. In that case, I would anticipate a risk-off move, with equities falling, the dollar rallying, and precious metals declining.
Conversely, a figure in line with expectations or lower would likely provide short-term relief, boosting stocks and precious metals while weighing on the dollar. However, the bigger picture remains unchanged as inflationary pressures from the Middle East crisis persist.
Share to
Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
Chicago Fed President Austan Goolsbee said CPI data was discouraging and that more bad months of inflation would be unacceptable, stressing the need to focus…
The Fed's October Beige Book indicates nine of 12 districts saw growth, but price pressures widened and consumer spending stalled.
October Fed meeting stakes rise after hot CPI; two-year yield jumps 15 bps, futures price a 50/50 hike chance. Key Fed speeches loom before the blackout period.
A guide to judging which economic releases matter to markets, based on central bank priorities, economic context and what traders have already priced in.