Markets’ Heightened Sensitivity to Inflation Data; A Gift to Fed as U.S. Hiring Cools By James Christie
Good day. Investors haven’t had it easy trying to get a handle on how the Federal Reserve views its progress tamping down inflation and what that means for interest rates, judging by how Treasury yields and stock futures have reacted to inflation data that is out of step with forecasts. Stock-market sensitivity to inflation news over the past year and the Treasury market’s sensitivity to inflation and wage data has jumped far above historical levels, a Goldman Sachs economist says. Those findings come as key data this week will help investors gauge how the Fed is faring in its fight against inflation: consumer inflation figures come out on Thursday and producer price numbers on Friday. Those reports will follow the July jobs report, which indicated cooling in the labor market, a welcome development for bringing inflation down. Fed officials will take that into account along with additional hiring data for August and inflation readings for July and August in considering their next rate move at their meeting in September.
Now on to today’s news and analysis.
Top News Buckle Up for Another Round of Inflation Data
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Source: www.marketscreener.com
ENB
Sandstone Group
