USD

The Federal Reserve’s rate-setting committee raised benchmark rates by 50 basis points and lifted rate forecasts by more than expected – suggesting that officials are waiting for sustained and conclusive evidence of a downturn in inflation before executing the policy “pivot” markets have been hoping for. At the conclusion of its last two-day meeting in 2022, the Federal Open Market Committee unanimously voted to raise the target range for the federal funds rate to 4.25-to-4.50 percent, with no dissents in favour of a smaller or larger move. In the official statement setting out the decision, policymakers avoided telegraphing a slower...

US consumer prices climbed by less than expected in November, giving the Federal Reserve some breathing room as it prepares to signal a deceleration in the pace of rate increases. According to data released by the Bureau of Labor Statistics this morning, the headline consumer price index rose 7.1 percent in November from the same period last year, up 0.1 percent on a month-over-month basis. Economists polled by major data providers ahead of the release projected an 7.3 percent annual gain and a 0.3 percent increase relative to October. A 1.6 percent month-over-month tumble in energy prices – led by...