(Bloomberg) — For investors burned by inflation, a very bad year is starting to look even worse. As stock prices tumbled and bonds were hit with the deepest losses in decades, the surge in consumer prices turned a few corners of the financial markets into profitable refuges earlier this year. Oil prices rallied. Other commodities […]
Read More(Bloomberg) — Former Treasury Secretary Lawrence Summers argued against the Federal Reserve holding back from aggressive monetary tightening, saying that greater economic damage would result from any hesitation. “History records many, many instances when policy adjustments to inflation were excessively delayed and there were very substantial costs to that,” Summers told Bloomberg Television’s “Wall Street […]
Read More(Bloomberg) — Investors, analyst and economists alike received a harsh reality check on Tuesday as inflation for the month of August topped expectations and sent US stocks tumbling by the most more than two weeks. The S&P 500 Index slumped as much as 2.7%, putting it on track to snap its longest winning streak in […]
Read More(Bloomberg) — US consumer prices were resurgent last month, dashing hopes of a nascent slowdown and likely assuring another historically large interest-rate hike from the Federal Reserve. The consumer price index increased 0.1% from July, after no change in the prior month, Labor Department data showed Tuesday. From a year earlier, prices climbed 8.3%, a […]
Read More(Bloomberg) — The bond market is signaling that in the matter of the Federal Reserve versus inflation, its money is on the US central bank. Demand for inflation protection — as measured by yields on inflation-protected Treasury debt — keeps falling. The five-year expected inflation rate implied by those yields is back below 2.6%, down […]
Read More(Bloomberg) — Three months after the Federal Reserve stopped reinvesting all of the maturing Treasury securities in its portfolio — allowing $30 billion a month to run off — its holdings of the debt ought to be lower by $90 billion. Soaring inflation is slowing that decline. That’s because the Fed’s Treasury holdings include inflation-protected […]
Read More(Bloomberg) — Turkish inflation exceeded 80% for the first time since September 1998, as policies that prioritized economic growth and cheap lending exact a toll on the lira and price stability. Annual inflation quickened for a 15th consecutive month to 80.2% in August, up from 79.6% in July, according to data released on Monday by Turkey’s […]
Read More(Bloomberg) — Rising food prices have been one of the key drivers of this year’s inflation woes as farmers across America face surging costs for fertilizer and fuel while also grappling with lingering supply-chain issues and labor shortages. Brian Duncan, operator of a family farm and vice president of the Illinois Farm Bureau, joined this […]
Read More(Bloomberg) — Texas’s tax revenue is rising by historic amounts, in part as economic growth and soaring inflation drive up the price of goods. The Lone Star state collected $77.2 billion in a category known as all funds tax collections in the fiscal year through August, up 25.6% from the same period a year earlier, […]
Read More(Bloomberg) — Stocks are falling and bond yields are rising, but markets still don’t seem convinced the Federal Reserve will pursue plans to keep increasing interest rates until inflation is under control, said Sonal Desai, chief investment officer for fixed income at Franklin Templeton Cos. “The Fed lacks credibility,” Desai said on Bloomberg Television’s “Wall […]
Read More(Bloomberg) — Investors bracing for a recession jolt accelerated their retreat from stocks after the Federal Reserve warned it won’t be easily deterred in its fight against inflation, Bank of America Corp. strategists say. Global equity funds had outflows of $9.4 billion in the week to Aug. 31, the fourth-largest redemptions this year, according to […]
Read More(Bloomberg) — Economists boosted their inflation estimates for each quarter in 2023, a potentially worrying sign for Federal Reserve policy makers trying to keep price expectations anchored. The personal consumption expenditures index, which the Fed uses for its inflation target, is seen averaging an annualized 2.5% at the end of next year, up from 2.3% […]
Read More(Bloomberg) — A key measure of US producer prices unexpectedly fell in July for the first time in more than two years, largely reflecting a drop in energy costs and representing a welcome moderation in inflationary pressures. The producer price index for final demand decreased 0.5% from a month earlier and rose 9.8% from a […]
Read More(Bloomberg) — The cooler-than-expected US inflation reading for July is a positive sign that has buoyed risk assets, but some investors may be getting a little ahead of themselves, according to analysts. The rally that sent the S&P 500 to a three-month high and the Nasdaq 100 more than 20% above its June bottom was […]
Read More(Bloomberg) — US inflation decelerated in July by more than expected, reflecting lower energy prices, which may take some pressure off the Federal Reserve to continue aggressively hiking interest rates. The consumer price index increased 8.5% from a year earlier, cooling from the 9.1% June advance that was the largest in four decades, Labor Department […]
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