13 October 2022
If you are covering the latest US inflation figures, please see the following comment from Richard Carter, head of fixed interest research at Quilter Cheviot:
“As was widely expected, today’s US CPI numbers once again showed that inflation is gradually easing on the back of lower gasoline prices, dipping to 8.2% in the 12 months to September compared to 8.3% in August. However, the fact that the core rate remains well over 6% demonstrates that inflation pressures are still broad-based and there seems little prospect of the Federal Reserve toning down its hawkish rhetoric at this stage.
“Despite cooling off slightly, inflation remains high and we would therefore expect to see another 0.75% interest rate hike at the next meeting and for the Federal Funds rate to be close to 4.5% by year-end. Investors continue to pray for a Fed pivot, but they may need to be patient.”
