The bear is back on inflation worries, nevertheless I think they will be more concerned with the jobs data on Friday. But for now, we have to suffer through the volatility:
The personal consumption expenditures deflator, an inflation measure watched by Fed policy makers, rose 3.5 percent in June from a year earlier. Economists expected a 3.3 percent increase, based on the median estimate in a Bloomberg survey.
Interest-rate futures suggest there is a 36 percent chance the Fed will raise rates to 5.50 percent from 5.25 percent when policy makers on Aug. 8. The odds were 31 percent yesterday. They were as high at 75 percent a month ago.
The personal consumption expenditures deflator, an inflation measure watched by Fed policy makers, rose 3.5 percent in June from a year earlier. Economists expected a 3.3 percent increase, based on the median estimate in a Bloomberg survey.
Interest-rate futures suggest there is a 36 percent chance the Fed will raise rates to 5.50 percent from 5.25 percent when policy makers on Aug. 8. The odds were 31 percent yesterday. They were as high at 75 percent a month ago.
This entry was posted
on Tuesday, August 01, 2006 at 6:52 AM.
