We’ll get a new reading on inflation today. This follows the jobs data on Friday, which revealed that hiring is still strong in spite of the economic challenges. 236,000 new employees were employed by U.S. firms, a significant increase but the worst performance since December 2020. From 3.6% to 3.5%, the unemployment rate decreased.
According to the CME FedWatch Tool, which examines data from Fed funds futures contracts, the probability that the Federal Reserve will increase interest rates by a quarter percentage point at its meeting next month increased after the release of the jobs report.
The Fed received a warning signal from the consumer price index report from last month. Even though annual inflation fell for the eighth consecutive month, monthly inflation increased significantly. That prompted the Fed to raise interest rates at its most recent meeting in spite of the financial turbulence caused by the failure of Silicon Valley Bank.
When are CPI statistics released?
At 8:30 a.m. ET, the Bureau of Labor Statistics will issue the CPI report.