Background: The Fed decides to raise interest rates by another 0.25 percentage points in October
U.S. inflation: Headline CPI in August came in at around 3.7%, while core PCE was 3.4%, both higher than previously forecast. The Fed projects that inflation will not return to its 2% target until 2029.
Labor market: The unemployment rate remains at 4.1%, and job growth is strong, indicating that the economy can withstand higher interest rates.
Energy pressures: Oil and energy prices are climbing due to the Middle East conflict and the war with Iran, increasing the risk of “second-round effects” on transportation, goods, and service costs.#TinFed #Nikkei225Jumps2.5%ToThreeMonthHigh
U.S. inflation: Headline CPI in August came in at around 3.7%, while core PCE was 3.4%, both higher than previously forecast. The Fed projects that inflation will not return to its 2% target until 2029.
Labor market: The unemployment rate remains at 4.1%, and job growth is strong, indicating that the economy can withstand higher interest rates.
Energy pressures: Oil and energy prices are climbing due to the Middle East conflict and the war with Iran, increasing the risk of “second-round effects” on transportation, goods, and service costs.#TinFed #Nikkei225Jumps2.5%ToThreeMonthHigh
