Reserve

Rise

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  Neither the author, Ruholamin Haqshanas, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions. 
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<p class="has-drop-cap">The yearly inflation rate was<a aria-label="came in at 3.2% in July (opens in a new tab)" href="https://www.bls.gov/news.release/cpi.nr0.htm" target="_blank" rel="noopener noreferrer nofollow" class="deco-link"> 3.2% in July</a>, almost aligned with expectations but still significantly higher than the Federal Reserve’s desired 2%. The jobless claims data for the week that ended August 5 <a aria-label="rose to 248,000 (opens in a new tab)" href="https://www.barrons.com/livecoverage/stock-market-today-081023/card/jobless-claims-rise-again-but-continuing-claims-decline-Ys2keXCI0HBcr584GfE8" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">rose to 248,000</a>, exceeding the consensus projection of 230,000.</p> 
<h3 id="inflation-lower-than-estimated-but-jobless-claims-rise">Inflation Lower Than Estimated but Jobless Claims Rise</h3> 
<p>The new consumer price index (CPI) print showed that annual inflation stood at 3.2% in July, slightly lower than economists’ consensus expectations of 3.3%. However, the yearly rate increased compared to the <a href="https://tokenist.com/us-cpi-fell-to-3-in-june-fed-expected-to-continue-with-rate-hikes/" rel="noopener noreferrer nofollow" class="deco-link">June reading of 3%</a>.</p> 
<p>Month-on-month, prices rose 0.2%, in line with the estimates.&nbsp;</p> 
<p>Meanwhile, core CPI, disregarding volatile food and energy costs, also climbed 0.2% for the month. Annual core CPI was reported at 4.7%, compared to the Dow Jones consensus projection of 4.8%.&nbsp;</p> 
<p>While the US Federal Reserve will welcome the lower-than-expected CPI reading, the same cannot be said for jobless claims, which exceeded expectations. Specifically, jobless claims for the week that ended on Aug. 5 stood at 248,000, representing a 21,000 surge from the week prior and well ahead of the estimated 230,000.</p> 
<p>The four-week moving average was 231,000, new data showed, 2,750 higher than in the previous week. Continuing claims were 1.68 million, short of the 1.7 million consensus.&nbsp;The US economy <a href="https://tokenist.com/us-added-187k-jobs-in-july-as-hiring-cools-down/" rel="noopener noreferrer nofollow" class="deco-link">added 187,000</a> jobs last month, less than the projected 200,000.</p> 
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<h3 id="market-reaction">Market reaction</h3> 
<p>Financial markets showed a mixed reaction to the CPI and jobless claims reports. Although crypto prices fell in the past 24 hours, the digital assets were green on the 1-hour chart, with Bitcoin, Ethereum, Dogecoin, and XRP slightly rising by less than 1%.</p> 
<p>At the same time, futures tied to the Dow Jones Industrial Average climbed almost 200 points, while Treasury yields trended lower. Nasdaq and S&amp;P 500 futures also rose 29.5 and 148 points, respectively.&nbsp;</p> 
<p>The latest economic data negatively affected the US dollar strength index, slipping 0.5% to 102 at the time of publication.&nbsp;</p> 
<p>While inflation remains notably higher than the Fed’s <a aria-label="desired 2% target (opens in a new tab)" href="https://www.cfr.org/blog/history-and-future-federal-reserves-2-percent-target-rate-inflation-0" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">desired 2% target</a>, the decelerating prices are expected to take some of the pressure off the Federal Reserve to keep hiking rates. The US central bank <a href="https://tokenist.com/chances-of-a-25-bps-hike-at-98-9-as-fomc-decision-due-today/" rel="noopener noreferrer nofollow" class="deco-link">delivered another 25 bps hike</a> last month, expected to be the last one for now.&nbsp;</p> 
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<p><em><strong>How will Fed react to the latest CPI and jobless claims data? Let us know in the comments below.&nbsp;</strong></em></p> 
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/macro-review-cpi-as-expected-jobless-claims-grow/">US Macro: CPI at 3.2%, Jobless Claims Grow</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

US Macro: CPI at 3.2%, Jobless Claims Grow

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