The Clap
The Fed recorded an 8.2% increase in inflation YoY, close to its highest level in 40 years.
The Deets
The consumer price index (CPI) recorded an 0.4% increase in September, higher than the expected 0.3% estimate.
Market Reaction
Initially, the report shook markets, as the increased inflation all but confirmed more interest rate hikes to come.
The market did make a recovery, however, with the DJI, NASDAQ, and S&P 500 all closing up more than 2%.
Why this Matters
The Fed’s efforts to curb inflation have so far been unsuccessful following 3 consecutive 0.75% interest rate hikes.
