The Federal Reserve increased its benchmark funds rate by 75 basis points this month, raising it to a range of 3% to 3.25%, marking the institution's fifth consecutive rate boost this year.
The action demonstrated that the central bank is quite serious about combating the economy's persistently rising inflation, which has been a problem since the middle of 2021.
However, the September data, released this morning, showed the headline consumer price index (CPI) at an annualised rate of 8.2%, slightly lower than August's 8.3% but slightly higher than the 8.1% which had been forecast.
This suggests that the Fed's shift toward an aggressive anti-inflationary policy may not be hard enough.
There is no positive news to report here, and we should anticipate that the Fed will continue to raise interest rates aggressively at the upcoming FOMC meeting on November 1 and 2.
Following the publication of the data, the yield on 2-year Treasury bonds increased by 16 basis points to 4.45%, while the 10-year note once more climbed above 4%.