The stock market is staging its biggest rally in two years after a report showed Thursday morning that inflation cooled in October.
The consumer price index showed that annual inflation slowed to 7.7% in October, down half a percentage point from September. The extent of the slowdown surprised investors and increased confidence that the Federal Reserve will begin to slow its campaign to curb inflation via interest rate hikes.The prospect of looser money boosted stock valuations. As of midday, the Dow Jones Industrial Average was up by more than 1,000 points, or about 3%.
The Fed has raised rates by a mammoth 75 basis points at its last four meetings — a historic scale that is akin to 12 conventional rate hikes. Because inflation came in a bit cooler than predicted, it now appears likely that the Fed will only raise rates by 50 basis points at its December meeting. Some Fed presidents have begun to message that they would support the gradual lessening of rate hikes should inflation keep heading down, albeit slowly.
On Thursday afternoon, though, Cleveland Fed President Loretta Mester, while not addressing the report directly, threw a bit of cold water on investors’ optimism that rate hikes are winding down. During a webcast appearance, she reiterated that rates will need to continue to be hiked until inflation is crushed.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Several candidates who questioned 2020 results will now become states' chief election officialWhile their duties vary based on the state, in most states, secretaries of state serve as the administrator of elections.
Read more »
Candidates Who Questioned 2020 Election Factor in Swing-State RacesDemocrats have won races to be top election officials in two key battleground states over Republicans who stated without evidence that the 2020 presidential election was rigged
Read more »
How 2020 election deniers did in their 2022 midterm racesDozens of Republicans who disputed the 2020 election's legitimacy were on the ballot. Here's who won, who lost and which races remain uncalled.
Read more »
Keyontae Johnson Scores 13 Pts In First Game Since Collapsing On Court In 2020ICYMI: Keyontae Johnson scored 13 points in his first game since collapsing on the court mid-game in 2020.
Read more »
Detroit completes 80,000 absentee ballot count, contrast to 2020 election chaosDetroit election officials said they smoothly counted 80,000 absentee ballots and avoided the chaos that plagued the 2020 general election.
Read more »