Economists said that the Consumer Price Index data cemented the case for a third straight, unusually large three-quarter percentage point Fed rate increase at the central bank\u2019s meeting next week, and stocks swooned as investors began to speculate that officials could opt for an even more drastic full percentage point adjustment.<\/p>\n
\u201cInflation remains hot, financial conditions have seen some improvement and the labor markets are humming along,\u201d Neil Dutta, head of U.S. economics at Renaissance Macro, wrote in a research note following the release. \u201cIf the goal is to slow things down and create some pain, the Fed is failing by its own standard.\u201d<\/p>\n
The Fed closely watches the core inflation gauge, making its rebound in August a point of particular concern. After cutting out food and fuel, consumer prices climbed by 6.3 percent in the year through last month, up from 5.9 percent in July and more than the 6.1 percent economists had projected.<\/p>\n
Even looking at overall inflation, the report\u2019s details offered plenty to worry about.<\/p>\n
Read it all<\/a>.<\/p>\n Rapidly rising rents and grocery prices, unfortunately, more than offset the relief of >90 days of falling gas prices. High inflation remains at levels not seen in over 40 years. https:\/\/t.co\/OpOBY7X408<\/a><\/p>\n — Michael C. Khouw (@Michael_Khouw) September 13, 2022<\/a><\/p><\/blockquote>\n \n