Tag: inflation figures
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Markets have been celebrating disinflation, but it may be bad for stocks
[ad_1] While investors are celebrating signs suggesting U.S. inflation is slowing down, such a trend may negatively impact company earnings and in turn weigh on stock prices, as companies release their second-quarter financial results while the Dow Jones Industrial Average is on pace to record its 12th straight day of advance. “Stock prices are a…
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Opinion: Fed officials were slow to fight inflation. Now they may be too easy on it.
[ad_1] Political pressures on the U.S. Federal Reserve and President Joe Biden’s economic agenda have delivered a painful blow — inflation still above the Fed’s 2% target, high interest rates and declining living standards. COVID-induced supply chain disruptions can be blamed for about half of the surge in inflation that began in early 2021. Most of the…
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Everyone thinks Fed’s rate hike next week will be the last one — except the Fed
[ad_1] Wall Street economists seem convinced that the Federal Reserve will raise its benchmark interest rate by 25 basis points Wednesday and that this increase will turn out to be the final hike of this cycle. But they also don’t expect to hear Fed Chair Jerome Powell say so, at least not yet. “While we…
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Pound and U.K. bond yields slide after Britain’s inflation hits lowest in more than a year
[ad_1] The pound fell back below $1.30, U.K. government bond yields dropped sharply and London’s equity futures jumped after data showed Britain’s inflation has dropped to its lowest in more than a year. Headline annual inflation rose 7.9% last month, less than economists forecasts of 8.1%, and way below May’s 8.7%, according to the Office…
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RBA has left door ajar to raise rates further, depending on data
[ad_1] SYDNEY — The prospect of a further interest-rate increase by the Reserve Bank of Australia as early as August remains high, with minutes of the central bank’s July 4 policy meeting warning that even tighter policy settings may be required to bring down inflation. The RBA left the official cash rate on hold at…
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Stocks are riding a wave of optimism as U.S. inflation recedes, but there are dangers lurking
[ad_1] As U.S. inflation continues to cool, stocks are riding a wave of optimism. During the past week, the S&P 500 SPX, -0.10% climbed above 4,500 for the first time in more than 15 months, after both the consumer price index and producer price index data showed cooler-than-expected inflation in June. Some bulls expect an…
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Why markets are misjudging the Fed’s ability to raise rates even though inflation is slowing
[ad_1] Parts of the financial markets are struggling to adapt to the idea that the Federal Reserve might keep raising interest rates even after this week’s data clearly pointed to decelerating inflation. Late Thursday, Federal Reserve Gov. Christopher Waller indicated he remains unmoved by June’s consumer price index and that he supports two more rate…
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Inflation has slowed a lot — great. Here’s what is not so great.
[ad_1] The inflation dragon is breathing a lot less fire, but it’s far from dead. The rate of inflation slowed sharply to 3% in June from a 40-year high of 9.1% a year earlier, the consumer-price index showed. Wholesale prices have come down even more and are essentially flat over the past year. The good…
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Fed’s Waller, unimpressed by inflation data, calls for two more rate hikes this year
[ad_1] Federal Reserve Board Gov. Christopher Waller said Thursday he was not swayed by June’s benign consumer inflation data, and said he wants the central bank to go ahead with two more 25-basis-point rate hikes this year. “I see two more 25-basis-point hikes in the target range over the four remaining meetings this year as…