US Futures Slip as Inflation Expectations Reignite Rate Fears
Year-ahead inflation expectations reached 3.9% in September, while Fed minutes pointed to the possibility of another rate increase by year-end.
Key takeaways
- September year-ahead inflation expectations were 3.9%, their highest level since May 2023.
- Fed minutes indicated most officials saw a likely need for another 25-basis-point hike by year-end.
US stock futures pointed to a softer open Friday as inflation expectations revived concerns about interest rates. Median expectations for inflation over the year ahead reached 3.9% in September, the highest since May 2023.
Minutes from the Federal Reserve showed most officials saw a likely need for another 25-basis-point increase, taking rates to a range of 3.75% to 4% by year-end. The minutes indicate a possible move, not a rate decision.
Investors were awaiting Friday’s US consumer sentiment data and a speech by Fed official Collins for signs about how policymakers weigh inflation against growth risks. Mortgage applications had fallen 4.2%, while the average 30-year fixed mortgage rate was around 7.49%, according to the article.
This article was produced with the help of AI technology. Source: Yahoo Finance
