binance left Coinmarketcap net_left adver left

Strong rise in U.S. consumer prices gives Fed little respite

Wednesday, January 12, 2022
Strong rise in U.S. consumer prices gives Fed little respite © Reuters. FILE PHOTO: U.S. Federal Reserve Board Chair Jerome Powell speaks during his re-nominations hearing of the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill, in Washington, U.S., January 11, 2022. Brendan Smialowski/Pool via REUTERS/File

By Howard Schneider

WASHINGTON (Reuters) - U.S. consumer inflation running at levels not seen in more than a generation will keep the Federal Reserve on track with interest rate hikes and other changes expected in coming months to try to tame the surge in prices.

That's the take from economists and analysts as year-over-year inflation hit 7% in December, with price increases spreading to a broader set of goods and services, according to the latest Consumer Price Index (CPI) data released on Wednesday. Coupled with ongoing wage hikes and rising costs for long-lasting consumer goods, the December CPI continued to push up the key gauges Fed Chair Jerome Powell said last year that he has been monitoring to see if inflation will ease on its own.

As Powell acknowledged in a nomination hearing in Congress on Tuesday, so far it hasn't happened.

Graphic: https://graphics.reuters.com/USA-FED/INFLATION/zdpxoqkrkvx/index

"Today's report continues a trend of inflation prints that reside at multi-decade highs over the near-term, and we do not expect to see any letup for a few months," said Rick Rieder, BlackRock (NYSE:BLK)'s chief investment officer for global fixed income.

"Clearly, the Fed is on notice."

Investors and analysts now expect the U.S. central bank's policy-setting Federal Open Market Committee (FOMC) to raise its benchmark overnight interest rate from the current near-zero level at its March meeting, and continue with three more quarter-percentage-point increases over the year. Last month, Fed policymakers projected three rate hikes for 2022.

Fed officials ran behind in their inflation projections throughout 2021, and as a result have accelerated their plans to raise interest rates and start reducing the central bank's nearly $9 trillion in assets. (Graphic: The Fed's inflation outlook vs. outcomes, https://graphics.reuters.com/USA-FED/INFLATION/gkvlgxyqnpb/chart.png)

INFLATION HAWKS

With the headline inflation rate at a "vertiginous level," the challenge for the Fed will be to avoid tightening credit and financial conditions too fast, given how much is unknown about the behavior of prices as the reopening continues, wrote Bernard Baumohl, chief global economist with the Economic Outlook Group.

"A chorus of inflation hawks are expected to howl at an even higher decibel now on the need for the Fed to kick up interest rates four or five times this year," he wrote.

"We hope those on the (FOMC) will pursue a more judicious approach ... We are in the midst of an anomalous business cycle, one marked by unusually rapid, even violent, turning points in consumption, output, employment, inventory ... Market forces will re-emerge in force this year and begin to cool inflation."

That's what Powell is hoping too. The more adjustment that comes through untangled supply chains and additional workers returning to jobs, the less aggressive the Fed may have to be.

While the headline inflation number is high, the month-to-month pace of change eased in December.

Despite the pressure on the Fed and the difficult political situation as households cope with rising prices, the peak already may have come and gone, economists at Cornerstone Macro said this week, forecasting that consumer price inflation will slow by the end of 2022 to just 1.4%, with the Fed raising rates only twice. The Fed has a 2% inflation target.

The expectation of supply catching up with cooling demand "is no longer just a forecast," Nancy Lazar, a Cornerstone economist, said this week. "Inventories are up ... Production is more in line with new orders."

Leave your comment
ig right nyse right Neteller adver right
APPROVED BROKERS
rakuten_main right top net_home_top ig_main right top Binance _ main right top fbs_main right top tifia_main right top
26-01-2022 08:49:02 (UTC+7)

EUR/USD

1.1278

-0.0021 (-0.19%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (8)

Sell (1)

EUR/USD

1.1278

-0.0021 (-0.19%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (8)

Sell (1)

GBP/USD

1.3510

+0.0014 (+0.10%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (5)

Sell (2)

USD/JPY

114.29

+0.43 (+0.37%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (2)

AUD/USD

0.7174

+0.0026 (+0.36%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (7)

Sell (0)

USD/CAD

1.2573

-0.0053 (-0.42%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (9)

Sell (2)

EUR/JPY

128.89

+0.24 (+0.19%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (11)

Sell (0)

EUR/CHF

1.0386

+0.0012 (+0.12%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (10)

Sell (0)

Gold Futures

1,846.85

-5.65 (-0.30%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (5)

Sell (2)

Silver Futures

24.015

+0.119 (+0.50%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (11)

Sell (0)

Copper Futures

4.5210

+0.0710 (+1.60%)

Summary

Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (2)

Sell (1)

Crude Oil WTI Futures

86.96

+1.36 (+1.59%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

Brent Oil Futures

88.57

+1.39 (+1.59%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

Natural Gas Futures

4.173

+0.279 (+7.16%)

Summary

Sell

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (1)

Sell (7)

US Coffee C Futures

239.95

+2.05 (+0.86%)

Summary

↑ Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (0)

Sell (11)

Euro Stoxx 50

4,182.35

+104.09 (+2.55%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (1)

S&P 500

4,356.45

-53.68 (-1.22%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (10)

DAX

15,507.09

+383.22 (+2.53%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

FTSE 100

7,511.61

+140.15 (+1.90%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (1)

Hang Seng

24,289.90

+46.29 (+0.19%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

US Small Cap 2000

2,004.80

-28.71 (-1.41%)

Summary

↑ Sell

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (2)

Sell (8)

IBEX 35

8,672.07

+192.57 (+2.27%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (8)

Sell (1)

BASF SE NA O.N.

67.790

+2.460 (+3.77%)

Summary

Sell

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (0)

Sell (6)

Bayer AG NA

51.74

+0.92 (+1.81%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (0)

Sell (7)

Allianz SE VNA O.N.

224.62

+4.57 (+2.08%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (0)

Sell (6)

Adidas AG

246.40

+8.65 (+3.64%)

Summary

Sell

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (1)

Sell (7)

Deutsche Lufthansa AG

7.071

+0.394 (+5.90%)

Summary

↑ Sell

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (1)

Sell (8)

Siemens AG Class N

142.52

+4.00 (+2.89%)

Summary

Sell

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (1)

Sell (6)

Deutsche Bank AG

11.470

+0.396 (+3.58%)

Summary

↑ Sell

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (1)

Sell (9)

 EUR/USD1.1278↑ Buy
 GBP/USD1.3510Neutral
 USD/JPY114.29↑ Buy
 AUD/USD0.7174↑ Buy
 USD/CAD1.2573↑ Buy
 EUR/JPY128.89↑ Buy
 EUR/CHF1.0386↑ Buy
 Gold1,846.85↑ Buy
 Silver24.015↑ Buy
 Copper4.5210Buy
 Crude Oil WTI86.96↑ Buy
 Brent Oil88.57↑ Buy
 Natural Gas4.173Sell
 US Coffee C239.95↑ Sell
 Euro Stoxx 504,182.35↑ Buy
 S&P 5004,356.45↑ Sell
 DAX15,507.09↑ Buy
 FTSE 1007,511.61↑ Buy
 Hang Seng24,289.90↑ Buy
 Small Cap 20002,004.80↑ Sell
 IBEX 358,672.07↑ Buy
 BASF67.790Sell
 Bayer51.74↑ Sell
 Allianz224.62↑ Sell
 Adidas246.40Sell
 Lufthansa7.071↑ Sell
 Siemens AG142.52Sell
 Deutsche Bank AG11.470↑ Sell
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank6,190/ 6,240
(-5/ -5) # 1,175
SJC HCM6,180/ 6,245
(-10/ -10) # 1,179
SJC Hanoi6,180/ 6,247
(-10/ -10) # 1,181
SJC Danang6,180/ 6,247
(-10/ -10) # 1,181
SJC Nhatrang6,180/ 6,247
(-10/ -10) # 1,181
SJC Cantho6,180/ 6,247
(-10/ -10) # 1,181
Cập nhật 26-01-2022 08:49:05
Xem lịch sử giá vàng SJC: nhấn đây!
ↀ Giá vàng thế giới
$1,846.10-3.64-0.20%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-IV2486025350
RON 95-II,III
E5 RON 92-II2359024060
DO 0.05S1890019270
DO 0,001S-V1925019630
Dầu hỏa1779018140
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD22.460,0022.770,00
EUR24.918,8126.315,80
GBP29.789,2431.061,45
JPY192,82204,12
KRW16,3519,92
Cập nhật lúc 18:54:49 26/01/2022
Xem bảng tỷ giá hối đoái
binance main right Fxpro Main Right aetos main right adver main right