Fed Governor Bowman: CPI shows inflationary pressures may persist
Fed Governor Bowman said October CPI data show that inflationary pressures may persist. Combined with the still-strong labor market, this means the Fed still needs to take further policy measures.
Bowman also noted that financial conditions have tightened and the Fed needs to weigh the costs of further tightening. The labor market has improved, is no longer tight, and will not drive inflation higher.
CPI rose 0.4% month over month in October, while core CPI rose 0.3%; both were higher than expected. Markets see an 86% probability of a 25-basis-point Fed rate hike in December and a 14% probability of a 50-basis-point hike.
Bowman also warned that current stock valuations face the risk of a substantial correction.
$BTC $ETH
#fed #cpiwatch
Fed Governor Bowman said October CPI data show that inflationary pressures may persist. Combined with the still-strong labor market, this means the Fed still needs to take further policy measures.
Bowman also noted that financial conditions have tightened and the Fed needs to weigh the costs of further tightening. The labor market has improved, is no longer tight, and will not drive inflation higher.
CPI rose 0.4% month over month in October, while core CPI rose 0.3%; both were higher than expected. Markets see an 86% probability of a 25-basis-point Fed rate hike in December and a 14% probability of a 50-basis-point hike.
Bowman also warned that current stock valuations face the risk of a substantial correction.
$BTC $ETH
#fed #cpiwatch
