The Clap
U.S. consumer prices rose to a new 40-year high in February 2022, as the consumer price index (CPI) rose to a 7.9% annual rate, up from another 40-year high the month before.
The drivers
Higher gasoline, food, & rent prices were behind the inflation spike, which is expected to reach even new highs.
As Russia’s invasion of Ukraine sent energy & commodity prices through the roof, some Economists expect the annual inflation rate to come close to the 9% mark.
Equities were down
All three major U.S. stock indices, the NASDAQ, S&P 500, & Dow Jones, closed down yesterday after inflation figures were reported.
Amazon, however, was in the green on the back of its 20-to-1 stock split & share buyback program announcement.
Fed’s got a lot on its plate
The Federal Reserve was under pressure before the Russia-Ukraine crisis took place, & was projected to increase interest rates throughout 2022 aggressively.
Some analysts have to revise projections due to the added uncertainty of the geopolitical situation.
