Market Wire, North America

The Federal Reserve’s rate-setting committee raised its benchmark interest rate by 75 basis points and drastically raised its terminal rate estimates, triggering a spike in yields and the dollar. At the conclusion of its two-day meeting, the Federal Open Market Committee unanimously voted to raise the target range for the federal funds rate to 3-to-3.25 percent, with no dissents in favour of a 50 basis point move. In the official statement laying out the decision, policymakers removed language that previously highlighted a softening in spending and production, instead noting that “modest growth” should be expected. According to the accompanying Statement...

Headline US consumer inflation jumped by more than expected in August, and core price growth gained momentum, putting upward pressure on short-term yields as market participants bet the Federal Reserve would continue tightening at an aggressive pace. According to data released by the Bureau of Labor Statistics this morning, the consumer price index climbed 8.3 percent in August from the same period last year, up 0.1 percent on a month-over-month basis. Economists polled by major data providers expected an 8.1 percent annual gain and a -0.1 percent decrease relative to July’s flat month-over-month number. A -5 percent month-over-month drop in...