MysteryTrader's Commentaries
Aug
1
2006
Inflation Rising = Stocks and Bonds Falling
by MysteryTrader
Overall Rating:
News that the Fed's key inflation measure is rising at its fastest pace in more than a decade keeps upward pressure on interest rates.
The core-PCE deflator is rising at a 2.4% annual rate, above the Fed's target. This dashes widespread hopes for a pause in interest rates at the FOMC meeting next Tuesday.
War usually results in inflation, of course. What WERE they thinking?
Tags: economic-event
