Mónica Vianey Armenta Leal @marmenta: "The Federal Reserve appears set..."

Mexico

The Federal Reserve appears set on a cautious path forward, with the latest inflation data supporting only a modest rate cut in the near term. While the overall inflation narrative shows progress, the underlying pressures in core components necessitate vigilance. Investors should anticipate a measured approach from the Fed, reflecting a commitment to achieving a stable economic environment while avoiding unnecessary risks that could destabilize the progress made thus far. The recent market movements reflect a complex interplay between macroeconomic data and political developments. Let’s break down the current situation to provide a clearer perspective on the financial markets and potential implications for investors: 𝙄𝙣𝙛𝙡𝙖𝙩𝙞𝙤𝙣 𝘿𝙖𝙩𝙖 𝘼𝙣𝙖𝙡𝙮𝙨𝙞𝙨 - Headline Inflation: The Consumer Price Index (CPI) rose 2.5% year-over-year in August, a considerable decline from the 9% peak in June 2022. This decline is partly driven by a fall in gasoline prices and stabilization in grocery costs, which provide some relief to consumers amidst high borrowing costs. - Core Inflation: However, core inflation, which strips out the volatile food and energy prices, held firm at 3.2% year-over-year, unchanged from July. The monthly increase in core CPI was 0.3%, up from 0.2% in July, driven primarily by persistent shelter costs and a rise in service prices such as airfares. The data suggests that the Federal Reserve is likely to take a measured approach. While there is evidence of cooling inflation, the persistent core inflation indicates that inflationary pressures remain in certain sectors, particularly in services and shelter. 🚀 Portfolio profit 12M = 🟢+52.40% 🚀 Portfolio profit 24M = 🟢+44.28 ***** 👋 Welcome, investors and followers! I'm Mónica, a Popular Investor on eToro with a passion for building strong, low-risk portfolios that deliver long-term growth $NSDQ100 $SPX500 $BTC $AMZN (Amazon.com Inc) $TSLA (Tesla Motors, Inc.) $NVDA (NVIDIA Corporation)

Not investment advice. The author may have financial interests in the mentioned instruments.