Money is on 0.25 up steeply after CPI

First 68 Last

Share
Profile

Follow
daveironore

3,477 Posts.

401

13/01/23

07:46

Post #: 65668236
Share

Originally posted by Pete1952: ↑

The biggest reason December’s inflation is expected to be lower is falling gasoline prices. According to the EIA, the average retail price of gasoline in the United States dropped last month to $3.210 per gallon, compared with the December 2021 average of $3.307 per gallon.

December was the only month in 2022 that saw an annual decrease in retail gasoline prices.

The Federal Reserve will use December CPI to help guide its next interest rate decision. Prompted by declining CPI data, the Fed increased interest rates by 0.5% last month. That was after four 0.75% increases to overnight rates in a row.

If the Fed decides inflation has fallen enough to justify only a 0.25% increase, we should expect the U.S. dollar to continue to drop in value — and that would cause an inverse movement in gold and silver prices.

If, on the other hand, the Fed maintains a 0.5% rate increase, it’s likely we could see a temporary rebound in the greenback — and that would cause weakness for gold and silver.

According to CME Group, the odds of a 0.25% increase from the Fed are currently over 78%.

Nevertheless, I personally believe the Fed is going to raise rates again by 0.5% and that we’ll see the dollar stabilize and the price of precious metals cool off a bit. That’s because even though CPI declining to 6.5% would represent a significant drop in inflation, it’s still more than three times higher than the Fed’s long-term 2% inflation goal.
I think CPI headline inflation is going to need to be under 5% before the Fed cuts rate hikes to 0.25%.

Expand

Money is on 0.25 up steeply after CPI

XSO Value at posting: 2,952.2
2 Upvote

0 Great analysis

Reply

Top Stories

With financials holding the fort, materials must step up with some heavy lifting to stimulate stocks

STX

Strike Energy secures $153 million for Perth Basin gas projects

RDN

If you thought lithium was dead, think again. The Pilbara will be central to the next upswing

SBW

Shekel Brainweigh CEO Nir Leshem weighs in on AI adoption ahead of FY25

FHE

Frontier Energy achieves key milestone for Waroona energy project

BRX

Belararox delineates another porphyry in Argentina at Tambo South

AML

Cultural heritage agreement puts Walford Creek exploration back on the map

EMD

Emyria's Empax Centre chosen for mental health clinical trial

ASX Market Update: Shares fall flat as GYG soars on debut | 20 June, 2024

Plagues precede widespread power shifts. We’re living in one – and minerals are at the fore

There are more pages in this discussion • 2,096 more messages in this thread...

First 68 Last

Add XSO (ASX) to my watchlist

(20min delay)
Last 3,004.6		Change 18.600(0.62%)		Mkt cap ! n/a

Open	High	Low
2,986.0	3,004.6	2,986.0

Money is on 0.25 up steeply after CPI

With financials holding the fort, materials must step up with some heavy lifting to stimulate stocks

Strike Energy secures $153 million for Perth Basin gas projects

If you thought lithium was dead, think again. The Pilbara will be central to the next upswing

Shekel Brainweigh CEO Nir Leshem weighs in on AI adoption ahead of FY25

Frontier Energy achieves key milestone for Waroona energy project

Belararox delineates another porphyry in Argentina at Tambo South

Cultural heritage agreement puts Walford Creek exploration back on the map

Emyria's Empax Centre chosen for mental health clinical trial

ASX Market Update: Shares fall flat as GYG soars on debut | 20 June, 2024

Plagues precede widespread power shifts. We’re living in one – and minerals are at the fore

Featured News

Featured News

Money is on 0.25 up steeply after CPI

Top Stories

With financials holding the fort, materials must step up with some heavy lifting to stimulate stocks

Strike Energy secures $153 million for Perth Basin gas projects

If you thought lithium was dead, think again. The Pilbara will be central to the next upswing

Shekel Brainweigh CEO Nir Leshem weighs in on AI adoption ahead of FY25

Frontier Energy achieves key milestone for Waroona energy project

Belararox delineates another porphyry in Argentina at Tambo South

Cultural heritage agreement puts Walford Creek exploration back on the map

Emyria's Empax Centre chosen for mental health clinical trial

ASX Market Update: Shares fall flat as GYG soars on debut | 20 June, 2024

Plagues precede widespread power shifts. We’re living in one – and minerals are at the fore

Featured News

Featured News