Data released by the US Department of Commerce on October 28 showed that the US Central Bank’s main inflation indicator, the Personal Consumption Expenditures (PCE) Price Index, rose 0.5% in September. The Reserve will codify four consecutive 75 basis point (bps) rate hikes next month. While investors await the next bank rate hike, the midterm elections begin on November 8, and inflation weighs heavily on most Americans’ minds, according to reports.
PCE rises 0.5% in September, Fed hikes rates by 75bps, Democrats ignore inflation complaints
Friday, October 28, 2022, U.S. Department of Commerce It was published The latest PCE data and figures for September show a 0.5% increase from the previous month and a 5.1% increase over the past year. PCE is considered the Fed’s favorite inflation indicator because it shows personal income and disposable personal income (DPI) indicators. “Personal income increased by $78.9 billion (0.4%) in September,” the Bureau of Economic Analysis (BEA) said on Friday.
High wage growth, in line with latest consumer price index (CPI) report US consumer prices rose 8.2% in September. With the latest data released by the BEA on Friday, analysts believe the Fed will add another three percentage points in four minutes next week. “If things are going in the right direction, wage growth is still very high,” said Laura Rosner-Warburton, senior economist at Macropolicy Perspectives. Said New York Times. The economist added:
That probably puts upward pressure on service inflation.
The market is almost certain that a 75bps rate hike is on the card for the next Fed rate hike.But CNBC financial reporter Jeff Cox To tell: “The market thinks the Fed may slow down the pace of rate hikes going forward.” Cox data show a 60% chance that the Fed will soften with a 50bps rate hike in December. I have.Surprisingly, the Bank of Canada announced that he gain It lowered the benchmark bank rate by 50bps when the market was expecting a 75bps rise. The US midterm elections will start polling on his Nov. 8, along with the next meeting of the Federal Reserve Board. Reports say Democrats could be punished by voters over inflation.
in the midst of rapid inflation editorial “Joe Biden’s protectionism is costly for America and the world,” said The Economist. USA Today’s Ingrid Jacques detailed how Democrats are focused on leveraging abortion as a pressing issue, but Americans seem to think inflation is a more pressing issue. Instead of answering a question about inflation, Democratic Georgia gubernatorial candidate Stacey Abrams started talking about abortion.
‘Democrats are going too far with their hands and voters know it,’ says Jack explained October 29th.
What are your thoughts on US inflation data and the possibility of the Fed raising interest rates by 75bps? Let us know what you think about this in the comments section below.
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