inflation

After the US reported better-than-expected nonfarm payroll data last Friday, the country’s CPI data for October will be due this week. With the labour market recovery back on track and likely to meet the Fed’s lowered bar for maximum employment by mid-2022, inflation may further accelerate. CPI...

The US Federal Reserve is expected to announce that it will begin winding down the bond-buying program put in place last year, at the end of its 2nd to 3rd November 2021 policy meeting. Investors increasingly expect Fed officials to start raising the benchmark interest rate, which is currently...

Federal Reserve Chair, Jerome Powell, sounded a note of heightened concern over persistently high inflation as he emphasised that the central bank would begin tapering its bond purchases shortly while remaining patient on raising interest rates. The risks are now longer and more persistent...

Inflation is the focus this week, with a US report on consumer prices and Federal Reserve Chairman Jerome Powell’s testimony on Capitol Hill. The US CPI is expected to post another significant gain in June, underscoring a run-up in inflation as the economy emerges from the coronavirus...

A key inflation indicator that the Federal Reserve uses to set policies rose 3.4% in May from a year ago, the fastest increase since the early 1990s, according to data released last Friday. With a higher inflation leading to an unexciting stocks market, this may give dollar some support in the...

If the Federal Reserve’s view on inflation prevails, a few key things must change, particularly when it comes to getting people back to work. Having said that, the Fed is unlikely to discuss about tightening this week, which may send dollar lower again. Solving the jobs puzzle has been the...

Currency traders are watching this week’s US unemployment rate for cues on the greenback’s path after it retreated from a two-month high against the yen. The currency pair declined as better-than-expected US core PCE inflation data for April failed to push Treasury yields higher. USD/JPY’s...

The inflation proves to be a short-term spike that should resolve itself as the economy returns to something like normal. However, short-term inflation can become self-fulfilling if the Fed loses credibility, because then, inflation expectations will lose their anchor to its 2% target. No matter...