While an underlying indicator came in marginally hotter than expected, headline U.S. consumer price rise advanced in August as predicted, increasing bets that the Federal Reserve could raise interest rates the following week. Overall consumer prices increased by 0.4% month-on-month in August, aligning with expectations and surpassing July’s growth rate of 0.1%.In the twelve months Read More
New concerns regarding supply constraints through the Strait of Hormuz have intensified following the latest exchange of strikes between the U.S. and Iran in the region, resulting in an increase in oil prices. The U.S. stock markets are set to close for a holiday; however, traders are anticipating the release of crucial inflation data later Read More
Dow futures exhibited minimal fluctuations on Friday as investors maintained a cautious stance in anticipation of the U.S. jobs report. Additionally, remarks from Federal Reserve Governor Christopher Waller alleviated some apprehensions regarding a potential interest-rate increase. Meanwhile, a significant selloff in Lululemon and a leadership transition at Adobe contributed to the corporate news landscape, while Read More
The number of Americans applying for first-time unemployment benefits decreased by more than anticipated last week, yet remained largely within a consistent range, indicating that the labour market continues to exhibit stability despite unexpected job losses in July. Initial jobless claims in the United States decreased to 206,000 for the week ending August 15, down Read More
A batch of inflation data this week did not provide justification for the Federal Reserve to adopt a more hawkish position on interest rates at its September meeting, analysts suggest. In a note to clients, the analysts highlighted that underlying U.S. consumer price growth is trending down and oil prices are likely to moderate from Read More
The U.S. economy experienced an unexpected decline of 23,000 jobs in July, with significant downward revisions to gains from the previous two months, potentially undermining expectations for an interest rate hike by the Federal Reserve in the near future. Analysts had projected an increase in nonfarm payrolls of 85,000 for the previous month. Over the Read More
U.S. consumer sentiment increased in July, reaching its highest point since February, supported by indications of declining petrol prices at the pump in recent weeks, as reported by a new survey from the University of Michigan on Friday. An index from the university tracking consumer sentiment registered at 54.4 this month, an increase from 49.5 Read More
During a panel discussion with fellow central bankers in Sintra, Portugal on Wednesday, Warsh, who has proposed a revision of the Fed’s communication strategy, emphasised his intention to refrain from offering investors forward guidance regarding interest rates. Warsh stated that he thought inflation concerns in particular had started to decline, which put more focus on Read More
Morgan Stanley has retained its forecast for the Federal Reserve to hold interest rates through year-end, but warned that a drop in unemployment below 4% or persistently elevated inflation could force a rethink in favor of rate hikes. In a note to clients, analyst Michael Gapen said incoming data since the June FOMC meeting has Read More
The balance of risks in Federal Reserve interest rate policy seems to be shifting towards an emphasis on “firmer inflation rather than weaker hiring,” as noted by analysts. In a note on Friday, the strategists including Michael Gapen and Sam Coffin indicated that any sustained disinflation in the future hinges on the resolution of the Read More
