top of page
  • Ballestas Group

Uncertainty ahead of Fed rate hike

Updated: Sep 19, 2022

The inflation rate in the US fell from 8.5% to levels of 8.3% (consensus expected it to fall to 8.1%). For its part, the underlying rate accelerated from 5.9% to levels of 6.3% (consensus 6.1%). After the inflation data, the market is discounting an 84% probability of a 75bps hike at the next monetary policy meeting on September 21 (and the remaining 16% a 100bps hike). The good news of the week came from the side of the labor market, given that on Thursday the weekly figure on unemployment claims was published, which fell again. The data was 213K when the consensus expected said figure at 226K. The 4-week moving average, which removes the volatility that weekly data can have, was also down 8K to 224K. The strength in the American labor market continues.


4 views0 comments

Recent Posts

See All

The latest U.S. GDP figure showed slower growth, but a slower pace of slowdown than anticipated. The U.S. saw 2.9% growth in 4Q, down from 3.2% in Q3, yet still surpassing the projected 2.6%. After co

The U.S. Treasury Department estimated that the $31.4 trillion U.S. debt ceiling would be hit as early as Thursday, January 19th. Following the announcement, Treasury Secretary Janet Yellen informed c

bottom of page