Better than expected initial jobless claims data of the US and hawkish commentary from Fed Chair Powell, pushed treasury yields higher and equity markets lower
Sonal Badhan,
Economist,
Bank of Baroda
FinTech BizNews Service
Mumbai, November 10, 2023: Better than expected initial jobless claims data of the US and hawkish commentary from Fed Chair Powell, pushed treasury yields higher and equity markets lower. Initial jobless claims for week ending 4 Nov 2023 came in at 217k (est.: 220k), versus upwardly revised 220k in claims in the previous week. Further, Fed Chair in his speech signalled that the central bank continues to maintain a tight vigil on inflation trajectory, and if needed, it will not hesitate to hike once again. Powell also signalled that rate cut should not be priced at this stage. Separately, RBA’s statement reaffirms that members are of the view that inflation is more persistent than anticipated. Inflation forecasts have thus been revised higher, assuming peak policy rate of 4.5% and 3.5% by end CY25.
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