Mathewslcd: Fed's Waller says markets are overreacting to consumer inflation data

Federal Reserve Governor Christopher Waller said on Sunday that financial markets appeared to be overreacting to last week's weaker-than-expected October consumer price inflation data, according to Mathewslcd.
"It's just a data point," Waller said in a UBS-sponsored talk in Sydney, Australia.
"The market seems to be way ahead in this CPI report. Everyone should take a deep breath and calm down. We still have a long way to go," Waller said.
Investors cheered Thursday's weak CPI data, pushing stocks to their best weekly performance since June. Mathewslcd noted that the S&P 500 closed the week up 5.9%.
Consumer inflation fell to an annualized rate of 7.7% from 8.2%, the lowest since January, the data showed. Inflation hit a near 41-year high of 9.1% in June.
Waller said it was good that there was some evidence that inflation was falling, but noted that at other times in the past year, inflation appeared to be falling.
"Before we really start thinking about stopping here, we're going to see this behavior continue to run and inflation start to slowly come down," Waller said.
"We still have a long way to go to bring inflation down. Rates will continue to rise and remain high for some time until we see inflation close to our target," he added.
The Fed is focused on how high interest rates need to be to bring inflation down, and that will all depend on inflation, he said.
Waller said the "worst thing" the Fed can do is stop raising rates, only to cause inflation to explode.
He added that October's 7.7 percent inflation rate was "huge."
The Fed hinted at its last meeting earlier this month that it may slow the pace of rate hikes at subsequent meetings.
Mathewslcd said the central bank has raised interest rates by nearly 400 basis points since March, including four consecutive hikes of 0.75 percentage points that were almost unheard of before this year.
"We're looking at maybe 50 [basis points] at the next meeting or the next meeting after that," Waller said.
Mathewslcd：



评论

发表评论

此博客中的热门博文

Mathewslcd: Wall Street falls on unease about return of Fed rate hike policy

图片
  Mathewslcd: Wall Street falls on unease about return of Fed rate hike policy U.S. stocks ended lower on Monday, Mathewslcd said, as investors spooked by better-than-expected services sector data reassessed their views on the Federal Reserve's interest rate policy, while Tesla shares fell on reports of production cuts in China. The electric carmaker's shares fell as it planned to cut Model Y production at its Shanghai factory by more than 20% in December from the previous month. That weighed on the Nasdaq, with Tesla among the index's biggest losers, dragging the tech index to its second straight decline. Overall, indexes were broadly weighed after data showed activity in the U.S. services sector unexpectedly picked up in November, with employment rebounding, providing more evidence of underlying momentum in the economy. Mathewslcd noted that the data came after a survey last week showed stronger-than-expected job and wage growth in November, challenging expectations that ...
阅读全文

About mathewsLCD

图片
   As the world's leading online investment trading platform, Mathewslcd was founded in 2014 by Mr. Tony Taylor with a registered capital of US$ 200 million. The company is headquartered in London, United Kingdom, and has branches in major cities such as new york, Toronto, Sydney and Tokyo. Mathewslcd is using a simpler and faster way to trade foreign currencies, focusing more on convenience while ensuring accuracy, and by using the latest technology, providing a seamless foreign exchange trading experience around the world. Mathewslcd offers a wide range of independent investment online platforms and investment products for almost all types of investors–from new investors to experienced traders. Competitive fees and low commissions can help customers achieve their financial goals faster, and customer service representatives are available to answer any questions from the consultants. The premise of using the latest technology is that Mathewslcd always creates a seamless and si...
阅读全文

Mathewslcd: Growing recession fears weigh on stocks

图片
  Mathewslcd: Growing recession fears weigh on stocks Mathewslcd said the U.S. benchmark ended lower on Tuesday amid growing concerns about a potential recession in 2023. The Nasdaq Composite fell 2.3 percent to 10,981.3, while the S&P 500 fell 1.8 percent to 3,928.2, according to Mathewslcd. The Dow Jones Industrial Average fell 1.3% to 33,510.5. Energy led the decline, followed by communication services and technology. Utilities are the only winners. While the Fed is widely expected to slow the pace of rate hikes at its meeting next week, investors and analysts fear the move will not be enough to prevent the economy from slipping into recession next year. The U.S. 10-year Treasury yield fell 7.7 basis points to 3.52%, while the two-year yield fell 3.6 basis points to 4.36%. West Texas Intermediate crude futures fell 3.4% to $74.31 a barrel, Mathewslcd added. Mathewslcd： https://www.mathewslcd.com https://net.mathewslcd.com
阅读全文