Currency market participants this week have been focused on the Fed’s future monetary policy path after receiving key inflation reports. The headline and core U.S. consumer price index (CPI) logged an annual advance of 3.7% and 2.6%, respectively, in September, with the headline figure driven by a 20.4% Y/Y surge in the index for energy prices.
The Fed has a long-term inflation target of 2%, though it prefers to track the personal consumption expenditures price index to gauge price pressures.
Meanwhile, the headline U.S. producer price index (PPI) climbed 6.3% Y/Y in September, marking the largest Y/Y increase since December 2022.
Odds of the Federal Open Market Committee (FOMC) delivering a quarter-point rate hike later this month rose after the CPI and PPI reports, but they were tempered on Friday after Fed Chair Warsh spoke at a forum in Bangkok at the annual meetings of the International Monetary Fund and the World Bank Group.
#Odds #FOMC
The Fed has a long-term inflation target of 2%, though it prefers to track the personal consumption expenditures price index to gauge price pressures.
Meanwhile, the headline U.S. producer price index (PPI) climbed 6.3% Y/Y in September, marking the largest Y/Y increase since December 2022.
Odds of the Federal Open Market Committee (FOMC) delivering a quarter-point rate hike later this month rose after the CPI and PPI reports, but they were tempered on Friday after Fed Chair Warsh spoke at a forum in Bangkok at the annual meetings of the International Monetary Fund and the World Bank Group.
#Odds #FOMC