EUR/USD
1.11229
-0.672%
Gold
4095.95
-1.560%
Oil
94.187
0.342%
USD/JPY
158.822
0.316%
GBP/USD
1.31694
-0.644%
GBP/JPY
209.164
-0.316%
Real-time News
On October 14th, Peter Boockvar, Chief Investment Officer of One Point BFG Wealth Partners, stated, "I still believe that an overall inflation rate of 3% to 4% has become the new normal, and the trend of continued price increases remains unchanged, especially on the corporate side. We will see this in the Producer Price Index (PPI) to be released tomorrow, and currently the PPI is even rising faster than the CPI."On October 14th, Jeffrey Roach, chief economist at LPL Financial, stated, "Inflationary pressures are spreading from the energy sector to the broader economy, suggesting that the final stages of inflation returning to target levels may remain bumpy and keep interest rates high. The latest report complicates the Feds policy decision this month, as the path to restoring price stability is becoming increasingly difficult."On October 14th, Carson Group Chief Macro Strategist Sonu Varghese stated, "The CPI data was higher than expected, and it wasnt just driven by fuel prices. Core inflation reached an annualized rate of 3.7% in September, compared to 3.2% over the past three years. The only surprise is that investors are still surprised by the generalized inflation. We havent seen the full impact of rising diesel prices and the AI boom yet. The Fed is likely to raise rates again this year, bringing them to 4.3%, but that level will probably still be insufficient to bring inflation down to 2%."On October 14th, Brad Conger, Chief Investment Officer of Hirtle & Co., stated that the September CPI data indicates that the upward trend in core prices over the past six months remains unchanged. Marginally, this further supports a Fed rate hike in October. However, we believe the overall risk balance is more important. Current economic growth is strong, allowing the FOMC to place greater emphasis on its anti-inflation mandate. I believe Warsh understands that the recent sharp sell-off in long-term Treasury bonds is partly due to a lack of market confidence in the Feds credibility in combating inflation. Therefore, his assessment is that a rate hike will stabilize long-term Treasury yields.On October 14th, FWDBonds Chief Economist Chris Rupkey stated that mounting evidence suggests the energy price shock triggered by the Middle East wars is beginning to drive up prices for other core goods and services. Clearly, as long as geopolitical risks continue to push up energy costs, many businesses will face cost pressures, forcing them to pass on inflationary pressures to other consumers and businesses. Inflation remains sticky, meaning Federal Reserve officials may need to raise interest rates further and keep them at higher levels until 2027.
