Oct 13, 2022
VOT Research Desk
Inflation in the US surpassed expectations in September once more. Thus, in the opinion of Commerzbank economists, Larger rate increases are all but guaranteed.
The statistics released today support the Fed’s top members concern that inflation is more persistent than anticipated.
Even if energy prices stabilize over the upcoming few months, inflation is still projected to be far higher than the Fed’s goal rate of 2%.
The minutes of the most recent FOMC meeting demonstrate the Fed’s commitment to raining down inflation.
To do this, monetary policy would need to become /appropriately/ restrictive, and the Fed would need to continue on this course of action even in the event that the labor market weakened. Thus, bigger rate increases are all but guaranteed.
