JPMorgan Chase: The Fed will only take tightening action if inflation returns to or exceeds 4%
JPMorgan's market team believes that inflation data is more likely to heat up than cool down. Nevertheless, they believe that this week's hotter data is unlikely to derail the risk appetite tone, and investors are unlikely to be fixated on a single data point, as there is still one CPI data release before the December Fed meeting. However, the team reminds investors that Powell has shifted the Fed's focus from the labor market to balancing dual mandates of employment and inflation. "If CPI or even retail sales data show a stronger growth trajectory and also stimulate inflation, then we need to pay attention to what will happen in the future."
In JPMorgan's view, investors are unlikely to turn to a cautious investment portfolio stance until they see the overall CPI annual rate reach 3.5% (which is a credible threat to the Fed). They believe that only when the inflation rate returns to or exceeds 4%, will the Fed take tightening action.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitcoin Faces Equilibrium as Demand Gradually Declines
Bitcoin’s demand is weakening post-May peak but remains enough to balance selling. Market stays stable in supply-demand equilibrium.Market Finds Balance Amid Cooling DemandSupply-Demand Ratio Reveals the StoryWhat This Means for Bitcoin’s Price Action

Bitcoin volume metric suggests '$130K-$135K BTC will happen' in the summer
Floki Inu to Go All In on Reddit for Valhalla Mainnet Launch

Eli Ben-Sasson: The Visionary Mind Behind StarkNet

Trending news
MoreCrypto prices
More








