Latest / Markets with Megan: A Quick Financial Markets Update / 045: Inflation Rise and Federal Reserve Reactions 09-13-23
Transcript
- 0:05Megan Horneman: Hello, this is Megan Horneman, the Chief Investment Officer for Verdence Capital Advisors.
- 0:09Megan Horneman: We're coming to you today with our regular segment of Markets with Megan and we're going to talk about the much-anticipated Consumer Price Index report that we got for the month of August.
- 0:19Megan Horneman: This is the biggest inflation report that investors look at on a monthly basis and what we saw that on the headline level, which includes energy prices, it was a pretty big monthly jump.
- 0:31Megan Horneman: This is not surprising at all because we had anticipated, because of the big increase in energy and gasoline prices, that we would get a big jump in that on a monthly basis.
- 0:42Megan Horneman: But what the Fed's going to be just a little concerned about is the fact that the core level so that strips out all that volatile oil and gas that actually rose as well by one-tenth on the month.
- 0:53Megan Horneman: It came down from four-seven on a year-over-year basis to four-three.
- 0:58Megan Horneman: So that's good.
- 1:00Megan Horneman: But again, the Fed is going to be watching these inflation indicators very closely because it's very easy to reignite inflation, especially when you have energy prices that are rising as much as they can.
- 1:11Megan Horneman: So with this the equity markets are absorbing the news relatively well.
- 1:16Megan Horneman: There's nothing in this report that suggests the Fed's going to do anything but probably stay on pause next week when they meet, and then it will assess the data as we get into a closer to their November meeting to see if any adjustments to monetary policy are needed.
- 1:31Megan Horneman: That's all we have today.
- 1:33Megan Horneman: If you have any questions or comments, please feel free to reach out to at podcast at verdence dot com.
- 1:37Megan Horneman: Thank you.