Market Wire, North America

Last updated: 08:46 EDT Underlying US consumer inflation accelerated more than expected last month, helping ratify market expectations for at least one more move in the Federal Reserve’s tightening cycle.  According to data published by the Bureau of Labor Statistics this morning, the headline consumer price index rose 3.7 percent in August from the same period last year, up 0.6 percent on a month-over-month basis. This was closely aligned with consensus estimates among economists polled by the major data providers ahead of the release. Energy costs jumped 5.6 percent month-over-month as global oil prices surged.  The – arguably more important...

Speaking at the Jackson Hole Economic Policy Symposium this morning, Federal Reserve Chair Jerome Powell delivered a slightly less hawkish message than markets had feared, saying that the central bank would “proceed carefully as we decide whether to tighten further or, instead, to hold the policy rate constant and await further data”. In a speech that recycled a lot of the language used in last year’s appearance, Powell said “Although inflation has moved down from its peak — a welcome development — it remains too high,” and noted “Additional evidence of persistently above-trend growth could put further progress on inflation...