• Home
  • About Us
  • Privacy Policy
  • Terms and Conditions
  • Team
  • Contact
Monday, December 4, 2023
FinCurrency
No Result
View All Result
  • Home
  • News
  • Finance
  • Economy
  • Crypto
  • Home
  • News
  • Finance
  • Economy
  • Crypto
No Result
View All Result
FinCurrency
No Result
View All Result

The Inflation Data Caused Mystery for the Future of the Economy

The release of new data in the US has caused concern about inflation to increase, leading to a decrease in risk appetite in the markets.

Emma Veress by Emma Veress
March 13, 2023
in Economy
Reading Time: 3 mins read
A A
0
The Inflation Data Caused Mystery for the Future of the Economy2
0
SHARES
5
VIEWS
FacebookTweetPinShareShare

The release of new data in the US has caused concern about inflation to increase, leading to a decrease in risk appetite in the markets. The data revealed that personal consumption expenditures rose more than expected in January. The core personal consumption expenditures price index, which excludes food and energy, also exceeded expectations with a monthly increase of 0.6% and an annual increase of 4.7%.

As a result, it is expected that the Fed will increase interest rates by 75 basis points in the near future, with increases of 25 basis points in March, May, and June. The US 10-year Treasury bond yield has risen to its highest level since November 2022, while recession pricing has lost momentum. The difference between the US 3-month Treasury bill yields and the 10-year Treasury bond yield has hit its lowest point since January 5. The US dollar index has risen due to expectations of a 75-basis point interest rate hike by the Fed, completing the week at 105.2, its highest level since the week of November 21.

The Inflation Data Caused Mystery for the Future of the Economy

Other Instruments are Struggling After the  Inflation Data

The price of gold and silver per ounce dropped by 1.7% and 4.6%, respectively, while Brent crude oil increased slightly by 0.2% to $82.9 per barrel, amidst mixed signals from US data leading to concerns about inflation. The negative performance of the US stock markets last week, in line with inflation concerns, shifted investor focus onto a heavy data agenda for the upcoming week.

Mixed signals from the US data turned the attention towards the Fed officials, who made statements throughout the week stressing that there is still a long way to go to combat inflation. Cleveland Fed President, Loretta Mester, highlighted that the data indicating higher-than-expected personal consumption expenditures implies that more effort is needed to bring inflation down to the target of 2%. Mester stated that “we need to see all prices fall and we haven’t yet seen that in a sustainable way.” Boston Fed President, Susan Collins, also noted that more interest rate hikes are required to control inflation, given that inflation remains high. She added that the recent data strengthens the view that “there is still more work to do” to bring inflation down to the target of 2%.

Fed Board Member, Philip Jefferson, conveyed that the ongoing imbalance between labor supply and demand in combination with rising labor costs in the service sector means that high inflation can only fall slowly. The minutes from the recent Fed meeting, released during the week, revealed that almost all Fed officials agreed on a 25-basis point increase in interest rates, while a few officials supported a 50 basis point increase. The minutes also noted that most officials observed that slowing the pace of interest rate increases would allow for better assessment of the economy’s progress towards the goals of maximum employment and price stability.

US GDP Increased Below Average

According to macroeconomic data released in the country, the Gross Domestic Product (GDP) for the fourth quarter of 2022 increased by 2.7% on an annual basis, falling below the expectations of 2.9% and being revised downwards. However, in the US, the number of initial jobless claims dropped to 192,000 in the week ending February 18th. While new home sales in the country reached their highest level since March 2022, rising by 7.2% monthly to 670,000, sales of existing homes fell to their lowest level since 2010, decreasing by 0.7% monthly in January. The Purchasing Managers’ Index (PMI) for manufacturing in the US showed a contraction at 47.8 in January, higher than expectations. As a result, the S&P 500, Dow Jones, and Nasdaq indices fell by 2.67%, 2.99%, and 3.33%, respectively, in the New York stock market last week. This week, durable goods orders, pending home sales, manufacturing activity indexes, and unemployment claims will be followed in the US.

  • Turkish Airlines Reports $2.7 Billion Profit in 2022
  • Buying The Dip On Bitcoin: How Will This Affect The Market Prices?
  • Statement from UAE Regarding Commercial Relations with Türkiye
Tags: fedinflation
Previous Post

The Future of Decentralized Finance with Blockchain Technology

Next Post

Central Bank Digital Currencies: A New Era for Money and Payments?

Emma Veress

Emma Veress

Hello there! My name is Emma, and I'm a daily breaking news journalist covering finance, economics, and crypto on a global scale. I graduated from Eötvös Loránd University with a degree in Communication and Media Studies MA, where I gained a passion for storytelling and analysis. As a journalist, I'm dedicated to providing my readers with accurate and timely news on financial and economic events happening around the world. I believe that by delivering high-quality journalism, I can help people make informed decisions about their finances and investments.

Next Post
Central Bank Digital Currencies: A New Era for Money and Payments?2

Central Bank Digital Currencies: A New Era for Money and Payments?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

No Result
View All Result

Popular News

  • 2VOO-vs-VTSAX--Which-Is-the-Better-Fund-for-You--

    VOO vs. VTSAX: Which Is the Better Fund for You?

    0 shares
    Share 0 Tweet 0
  • The Far Eastern Economic Review: A Look Back at Its Significance in the Asia-Pacific Region and Legacy

    0 shares
    Share 0 Tweet 0
  • IPT Price Prediction

    0 shares
    Share 0 Tweet 0
  • XBitcoin Capex Club Review : Is It A Scam ?

    0 shares
    Share 0 Tweet 0
  • Key Differences Between Asset Allocation and Security Selection

    0 shares
    Share 0 Tweet 0

Recent News

2Famous-Economist--Elon-Musk-Will-Choose-This-Altcoin

Famous Economist: Elon Musk Will Choose This Altcoin!

July 31, 2023
2CryptoBlades-SKILL-Coin-Weekly-Analysis-And-Price-Prediction

CryptoBlades (SKILL) Coin Weekly Analysis And Price Prediction

July 31, 2023
2DAR-Token-Weekly-Analysis-And-Price-Prediction

DAR Token Weekly Analysis And Price Prediction

July 31, 2023
2Big-News-Coming--SHIB-Tweet-Spoken

Big News Coming? SHIB Tweet Spoken!

July 30, 2023
FinCurrency Logo White Mode Retina Mobile

FinCurrency is a user-friendly platform that stands out as a unique source where our strong team of experienced and academically qualified writers, who are experts in their fields, analyze current issues and global affairs related to the finance and crypto world in an enjoyable and non-technical approach.

2Famous-Economist--Elon-Musk-Will-Choose-This-Altcoin

Famous Economist: Elon Musk Will Choose This Altcoin!

July 31, 2023
2CryptoBlades-SKILL-Coin-Weekly-Analysis-And-Price-Prediction

CryptoBlades (SKILL) Coin Weekly Analysis And Price Prediction

July 31, 2023
2DAR-Token-Weekly-Analysis-And-Price-Prediction

DAR Token Weekly Analysis And Price Prediction

July 31, 2023
  • Home
  • About Us
  • Privacy Policy
  • Terms and Conditions
  • Team
  • Contact

© 2023 FinCurrency - Global News

No Result
View All Result
  • Home
  • News
  • Economy
  • Finance
  • Crypto
  • Technology
  • Terms and Conditions
  • Contact

© 2023 FinCurrency - Global News

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Terms and Conditions.