{"id":94856,"date":"2024-11-13T11:31:41","date_gmt":"2024-11-13T09:31:41","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=94856"},"modified":"2024-11-13T11:32:00","modified_gmt":"2024-11-13T09:32:00","slug":"us-cpi-rates-in-focus-6","status":"publish","type":"post","link":"https:\/\/www.ironfx-cn.com\/ms\/us-cpi-rates-in-focus-6\/","title":{"rendered":"US CPI rates in focus"},"content":{"rendered":"

The US CPI rates for\u00a0 October are set to be released later on today, during the American trading session. Economists are currently expecting CPI<\/strong> rates on a Core level to remain steady at 3.3% on a yoy level and 0.3% on a mom level. Yet, the headline CPI rate on a yoy level, is expected to accelerate from 2.4% to 2.6% implying persistent inflationary<\/strong> pressures<\/strong> in the US economy<\/strong>. In such a scenario, pressure may increase on the Fed to remain on hold, in addition to the inflationary implications of the incoming administration\u2019s economic policies could further add pressure on the Fed to refrain from cutting interest rates. In our view, we would also place heavy emphasis on the Core CPI rates on a yoy level as 3.3% is still way above the Fed\u2019s 2% inflation target, and thus a failure to see progress on core inflation could spell trouble for the Fed<\/strong>. Nonetheless, should CPI rates<\/strong> come in hotter than expected, it may aid the greenback. Whereas, should they come in lower than expected or lower than the prior rate i.e. implying easing inflationary pressures, we may see the dollar weakening. In the US, we note the newly created department of Government Efficiency<\/strong> which will be run by Elon Musk and Vivek Ramaswamy<\/strong> according to various media outlets. Moreover, the FT<\/strong> has reported that Vivek and Musk will be working with the Office of Management and Budget<\/strong> until the 4th<\/sup> of July 2026. The newly created White House Advisory will provide advice and guidance from outside of government, in an attempt to reduce spending, and restructure agencies in an attempt to increase efficiency as well. In our view, the newly created department may seek to exempt certain positions in the civil service from employment protections, which could increase the administration\u2019s influence in the Federal Government.<\/p>\n\n\n\n

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