The latest Consumer Price Index (CPI) report from the Bureau of Labor Statistics showed a 3.7% year-over-year (YoY) increase in August, a pickup from the 3.2% increase in July. Rising energy prices largely fueled the uptick, with prices rising 0.3% even when stripping out the volatile food and energy categories. Markets reacted to the report results immediately, with US bond yields initially inching lower, then partially recovering. The more policy-sensitive 2-year US Treasury note yielded higher than 5% after considerable turbulence. The benchmark 10-year Treasury bond yield also rose to 4.28%. The dollar index (DXY) also recovered from its initial jitter.Given the reversal of the inflation cool-off in the previous months, the markets are wary of more hawkish policies from the Federal Reserve at the Sep 19-20 meeting. Nigel Green of deVere Group saw an unlikely September interest rate increase, given that the steady interest rates have already been “priced-in by financial markets.” However, he underscored the likelihood of another interest rate hike in November.The uptick in inflation gives the US central bank extra reason to be hawkish moving forward. The crypto market shaved $5 billion off its total valuation within hours, settling around $1.018 trillion at 14:00 GMT. The Federal Open Market Committee (FOMC) meeting next week will shed more light on the Fed’s policies and, by extension, market expectations.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 10 |
| People | Jerome Powell, Nigel Green |
| Companies | Bureau of Labor Statistics, US Treasury, Federal Open Market Committee (FOMC), deVere Group, Federal Reserve |
| Currencies | Ethereum, US Dollar, Bitcoin, Euro |
| Securities | None |
