Assessment: Federal Reserve officials have insisted for months that Inflation is ‘transitory’, however the latest reports show the word is no longer appropriate ….
U.S. stock index futures fell during morning trading Tuesday as new inflation data continued to show a sharp rise in prices.
Futures contracts tied to the S&P 500 futures declined 0.5% while and Nasdaq 100 futures were off by nearly 0.9%. Futures for the Dow Jones Industrial Average slipped 55 points.
“When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand ” Rev. 6:6
Futures moved lower after the November reading for the producer price index showed a year-over-year increase of 9.6%, the fastest pace on record and above the 9.2% expected by economists, according to Dow Jones. The index rose 0.8% month over month, above the 0.5% expected.
The Federal Reserve also kicks off its two-day meeting on Tuesday. The central bank will release a statement on Wednesday with quarterly projections for the economy, inflation and interest rates. Chairman Jerome Powell will also hold a press conference.
Morgan Stanley CEO James Gorman told CNBC on Monday that he thinks the central bank should start raising rates soon.
“The Federal Reserve would be better off storing away some of rate increases, so when the inevitable turn down comes, you’ve got some ammunition to fight with,” he said. “At the moment, at zero interest rates, we have no ammunition.”
Read More @ CNBC HERE