ICYMI: November’s annual headline CPI rate fell to 7.1% from 7.7% in the prior month, marking the lowest level since the end of 2021, after peaking at 9.1% in June.
November’s softer-than-expected consumer-price index is being described by traders and financial-market analysts as a “game-changer” that demonstrates inflation is swiftly easing, reducing the likelihood Federal Reserve policy makers will push interest rates above 5% in 2023.
“We were all expecting a softer report, but this is pretty significant and makes people question what the Fed is going to do moving forward,” said John Farawell, head of municipal trading at bond underwriter Roosevelt & Cross in New York. “We had been thinking 50- to 75-basis-point rate hikes, but now know that Wednesday’s move will be 50 and the one after that may be 25 in February,” he said via phone.
Indeed, fed funds futures traders were recalibrating their 2023 rate expectations, most notably around the Fed’s most-likely move in February. They now see a more-than-50% chance that policy makers will hike by only 25 basis points that month, after delivering a 50-basis-point hike on Wednesday — which, together, would take the Fed’s main policy rate target to between 4.5% and 4.75%.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Breaking: US annual CPI inflation declines to 7.1% in November vs. 7.3% expectedBreaking: US annual CPI inflation declines to 7.1% in November vs. 7.3% expected – by FXstreetNews Breaking Inflation CPI UnitedStates Macroeconomics
Read more »
US CPI climbed 7.1% in November, lower than estimatedInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Read more »
Bitcoin, Ether Jump After U.S. CPI Report Shows Slower-Than-Expected November InflationCrypto traders were monitoring the U.S. government's monthly inflation report for signs of whether the Federal Reserve's monetary-policy tightening this year is helping to slow the pace of consumer price increases.
Read more »
CPI Report Shows U.S. Inflation Eased in NovemberU.S. inflation eased significantly to 7.1% in November, its slowest pace since the end of 2021, the Labor Department said Tuesday.
Read more »
UK CPI Preview: Forecasts from five major banks, a November peakThe United Kingdom will release the Consumer Price Index (CPI) data on Wednesday, December 14 at 07:00 GMT and as we get closer to the release time, h
Read more »