Weekly Market Update: August 22, 2016
What We Learned Last Week
Housing activity continues to strengthen and inflation remains moderate, thanks to a mid-summer drop in petroleum and gasoline prices. At the moment, Consumer Price Index (CPI) inflation is running 0.8 percent on a year-over-year basis, and core CPI inflation is 2.2 percent. Inflation represented by the alternative chain price indexes for personal consumption expenditures stands at 0.9 percent overall, and the core inflation measure is 1.6 percent.
Jobless claims have slipped back to the low end of the very low range of the past year and a half.
Minutes from the latest Federal Open Market Committee (FOMC) meeting reflected a divided policy committee, with some preferring to raise rates soon and others preferring to wait for more evidence that inflation is heading closer to 2 percent.
What We Expect to See in the Week Ahead
The quiet week ahead ends with a bang that features the Fed’s annual gathering at Jackson Hole, WY with discussions around the conference’s topic, “Designing Resilient Monetary Policy Frameworks for the Future,” and a speech by Fed Chair Janet Yellen.
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