Inflation is expected to have cooled slightly in October, but whether the decline is enough to affect Federal Reserve monetary policy remains to be seen. HeleneBraunn reports
The tech heavy Nasdaq 100 and S&P 500, which has a strong technology component are down 34% and 20%, respectively this year. Fed Chair Jerome Powell said last week that while “incoming data since our last meeting suggests that ultimate level of interest rates will be higher than previously expected,” it would be appropriate to slow the pace of rate increases “as soon as the next meeting.”
In this week’s CPI report, the focus will be on “stickier” categories like housing and rents which aren’t expected to decline until spring next year but account for over 30% of the CPI basket, Dutta said. In addition, the Fed will also be scrutinizing services as they are most responsive to interest rates, said Brian Coulton, chief economist at Fitch Ratings. “If that gets worse, the Fed will be concerned,” he said.
Last month’s CPI release showed massive growth in bitcoin’s inverse correlation relationship with the U.S. dollar, according to a report by Arcane Research. The U.S. dollar recently sank from recent highs as market makers see a potential Fed pause in the near future, which would lower gains for the dollar. Bitcoin (
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