Live Coverage: Fed and markets await core inflation with angst
Premium|Take advantage of 60% OFF on your first month.
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 60% OFF!
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
CLAIM OFFERWill US inflation remain elevated? Investors are worried about the CPI – which is critical for the Fed decision. Another 0.3% read on core CPI may cause jitters in markets. Live coverage.
Join FXStreet Premium to ask analysts questions live, leverage actionable analysis and get Gold and signal alerts.
Core CPI hit 0.3% three times in a row
The Federal Reserve (Fed) targets core inflation, which excludes volatile items such as energy and food. Through interest rates, the central bank has more influence on underlying prices, such as those of housing and services – driven by wages.
The core Consumer Price Index (core CPI) rose by 0.3% in each of the past three reports, reflecting an annualized increase of 3.6%. That is significantly above the Fed's 2% goal. While the bank prefers another inflation gauge called Personal Consumption Expenditure (PCE), which is lower, any increase in CPI and its components is then reflected in PCE.
The economic calendar points to a repeat of the 0.3% increase in core CPI MoM, which would be worrying for markets. While it would leave the Fed on course to slash rates by 25 bps next week, its forecasts for 2025 would likely be more depressed.
A lower outcome of 0.2% would be a blessing for Stocks and Gold, while weighing on the US Dollar.
In case core CPI comes out at 0.3% – and especially higher – equities and the precious metal would suffer, while the Greenback would rise.
Live financial market coverage
FXStreet covers major economic releases in a live blog format, to provide readers an instant verdict of the data, rapid analysis of key assets, and for Premium members, the abilty to ask our experts questions in real time.
FXStreet Premium
FXStreet Premium provides subscribers access to analysts, exclusive actionable analysis, signals, Ed Ponsi's webinars, trade plans and a bullish/bearish indicator for Gold on critical events. Join FXStreet Premium here.
Will US inflation remain elevated? Investors are worried about the CPI – which is critical for the Fed decision. Another 0.3% read on core CPI may cause jitters in markets. Live coverage.
Join FXStreet Premium to ask analysts questions live, leverage actionable analysis and get Gold and signal alerts.
Core CPI hit 0.3% three times in a row
The Federal Reserve (Fed) targets core inflation, which excludes volatile items such as energy and food. Through interest rates, the central bank has more influence on underlying prices, such as those of housing and services – driven by wages.
The core Consumer Price Index (core CPI) rose by 0.3% in each of the past three reports, reflecting an annualized increase of 3.6%. That is significantly above the Fed's 2% goal. While the bank prefers another inflation gauge called Personal Consumption Expenditure (PCE), which is lower, any increase in CPI and its components is then reflected in PCE.
The economic calendar points to a repeat of the 0.3% increase in core CPI MoM, which would be worrying for markets. While it would leave the Fed on course to slash rates by 25 bps next week, its forecasts for 2025 would likely be more depressed.
A lower outcome of 0.2% would be a blessing for Stocks and Gold, while weighing on the US Dollar.
In case core CPI comes out at 0.3% – and especially higher – equities and the precious metal would suffer, while the Greenback would rise.
Live financial market coverage
FXStreet covers major economic releases in a live blog format, to provide readers an instant verdict of the data, rapid analysis of key assets, and for Premium members, the abilty to ask our experts questions in real time.
FXStreet Premium
FXStreet Premium provides subscribers access to analysts, exclusive actionable analysis, signals, Ed Ponsi's webinars, trade plans and a bullish/bearish indicator for Gold on critical events. Join FXStreet Premium here.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.