The latest inflation reading gives the Fed freedom to act, but that doesn't mean they know what to do.
When enough time goes by, economic data that once constrained policymakers now gives them leeway. If central bankers were on the lookout for "more good data" before they hit the stimulus switch, they likely found it on Wednesday as the reading for CPI broke below 3%, the lowest annual figure since spring 2021.
But that change might have more to do with last week’s market panic and massive sell-off than wavering confidence over the Fed’s ability to tamp down inflation. After all, the tremors from last Monday’s financial quake prompted some observersIt’s also a testament to how fickle the market can be. Stock indexes have won back roughly half the losses since mid-July's peak. Last week, the sky was falling. This week, we’re back to nitpicking over Goldilocks inflation readings.
Most megacap and growth stocks were up in premarket trading. The S&P 500 on Wednesday extended its winning streak to five sessions, boosted by softer inflation data, but the Nasdaq barely scraped into positive territory as Alphabet and some megacap stocks weighed. Investors have kept a cautious eye on this week's data releases - the last set of economic indicators before Fed Chairman Jerome Powell delivers a much-anticipated speech at Jackson Hole next week.
Global Battery Energy Storage System Market Global Battery Energy Storage System Market Dublin, Aug. 15, 2024 -- The "Battery Energy Storage System Market by Battery Type , Energy Capacity , Connection Type, Ownership and Region - Forecast to 2029" report has been added to ResearchAndMarkets.com's offering.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why the Fed should target 0% inflation: Fmr. Trump Fed nomineeEconomic improvement over time is supposed to be achieved by having vigorous debate from those with varying perspectives. No one has a monopoly on great...
Read more »
Will this week's inflation data interrupt Fed's rate plans?US stocks (^GSPC, ^DJI, ^IXIC) are mixed on Monday morning as Wall Street gears up for a busy week of crucial economic data including July's Consumer Price...
Read more »
Small US Inflation Pickup Won’t Derail a Fed Rate Cut in September(Bloomberg) -- US inflation probably picked up modestly in July, but not enough to derail the Federal Reserve from a widely anticipated interest-rate cut...
Read more »
Mild inflation reading offers Fed a 'green light' to cut rates in SeptemberAnother mild inflation reading released Wednesday removes one of the last hurdles the Federal Reserve needed to clear before cutting rates in September.
Read more »
Inflation Slipped to 2.9% in July, Keeping Fed on Track to Cut RatesThe consumer-price index rose 2.9% in July from a year earlier. The report marks the first time that the CPI has edged firmly below 3% since early 2021.
Read more »
How 2% became the Fed’s inflation targetThe Federal Reserve sets monetary policy with two goals in mind: to maximize employment and stabilize prices. The central bank ensures the latter by...
Read more »