HomeFinancial MarketsU.S. Inflation Expected to Persist, Force Interest Rates Higher for Longer

U.S. Inflation Expected to Persist, Force Interest Rates Higher for Longer

U.S. inflation is expected to continue rising on a monthly basis, confirming central bank policymakers’ beliefs that interest rates will need to remain higher for longer. The consumer price index, excluding fuel and food, is expected to rise by 0.3% for a second month. The U.S. labor market has also remained strong, thereby contributing to resilient inflation in the country.

September’s jobs report came in much stronger than expected, with more than double the amount of payrolls added than initially expected. Still, Bloomberg Economics does not believe that this data will seal the Federal Reserve’s next interest rate policy decision.

“The blowout September jobs report didn’t settle the debate about whether the Fed is done hiking rates,” Bloomberg observed. “Two critical upcoming economic indicators — CPI and the University of Michigan consumer-sentiment survey — may give a more definitive read. We expect September core CPI inflation to come in somewhat higher than consistent with the Fed’s 2% mandate, while higher gasoline prices may have pushed up short-term inflation expectations in the preliminary UMichigan survey for October.”

Stocks Continue Slide as Israel-Iran Tension Ensues

Stocks on the New York Stock Exchange continued their drop-off on Friday as investor anxiety rose following Israel's retaliatory strike against Iran. Market composure...

United Airlines Stock Jumps 14% After Strong Q1 Results and Optimistic Projections for Q2

Following a strong first-quarter earnings report, United Airlines saw its stock jump 14% on Wednesday. Investors were also intrigued by the company’s optimistic projections...

iPhone Shipments Drop By 10%, Get Overtaken By Samsung as World’s Largest Phone Seller

2024 is shaping up to be a challenging year for tech giant Apple. The company saw its iPhone shipments drop by almost 10% in...