The US CPI report rose to highest in this year
US consumer prices reached their highest in over a year in August due to rising gasoline prices, but moderate inflation may prompt the Federal Reserve to hold interest rates next Wednesday. The Labor Department reported Wednesday that the consumer price index rose 0.6% last month, the highest advance since June 2022. The CPI rose 0.2%…
The Fed may raise interest rates again this year
Inflation remains above the Federal Reserve’s 2% target, and with rising oil prices and a weakening labor market, the Federal Reserve may raise interest rates later this year. Markets expect the central bank to suspend rate hikes at its September 20 policy meeting. Key Private Bank senior vice president and managing director of investment strategy…
CPI and oil prices are reaching to higher point
The Bureau of Labor Statistics (BLS) reported that oil prices accelerated headline inflation and consumer prices in August, with oil prices reaching year-to-date highs. The energy index fell 3.6% for the year ended in August, but seasonally adjusted prices rose 5.6%. Gas prices jumped 10.6% in August. Rents rose within core inflation, while shelter index…
Japan Yen rose to higher level after drop for two months
Asian stock markets traded sideways on Tuesday due to the dollar’s retreat due to pushback from Chinese and Japanese central banks and speculators waiting for U.S. inflation data to indicate a peak in interest rates. The yen hit its best level versus the dollar in two months overnight, and the yuan enjoyed its best day…
Gold prices met two-week low today after US CPI data
Gold prices fell to a two-week low on Tuesday as the dollar rose ahead of U.S. inflation data, which could influence the Federal Reserve’s interest rate trajectory. Gold fell 0.5% to $1,911.70 per ounce, its lowest since August 25. The dollar rose 0.3% against its rivals ahead of U.S. CPI data, making gold more expensive…
The Fed planned to return inflation to 2% on 2024
The Federal Reserve is expected to avoid a “soft landing” by raising rates too much when pricing pressures and the job market moderate. The Sept 19-20 meeting will focus on economic predictions, predicting another raise by the end of the year and keeping rates near their top through 2024 to return inflation to the central…
The global economy are preparing for higher interest rates
The global economy is shifting towards higher interest rates for longer periods, with borrowing costs set for seven of the world’s 10 most-traded currencies. The European Central Bank must decide whether to raise rates or wait, with economists divided on the outcome. Money markets expect a 10th consecutive increase to 4% at 45%, down from…
The Central bank of China is tightening its rule of purchasing dollar to protect Yuan
China’s central bank is scrutinizing local enterprises’ big dollar purchases amid the depreciating Chinese yuan. The People’s Bank of China (PBOC) met with commercial banks to approve purchases of $50 million or more. The approval process will be extended due to the severe yuan depreciation, which many expect to fall below 7.5 per dollar. The…