News You Need To Know on Jan. 9, 2023

If you look at your investment accounts today, you may be pleasant to see the stock as they expand the Friday rally on the heels of a strong job reports, which reduces the possibility of a recession.

And that rally can be extended this week when the Consumer Price Index (CPI) is released on Thursday. The CPI will tell us how much inflation is still dropping our purse, and may indicate investors what the next steps from the Federal Reserve will be.

Economists predict that the inflation rate in December was 6.6% year-on-year in December, falling 7.1% a month ago. A major decline in inflation may push the Fed to be slightly higher in its interest rate this year.

The Fed followed those with an increase of 75 basis points at every beginning in June, and with an increase of 50 points in December. If CPI suggests that inflation has taken a big dip, you can see that investors can be celebrated and bet on shares that Fed will pursue a small interest rate increase later this month.

But if inflation remains continuously high, or does not decline as much as it does not fall as much as it is, then there is a possibility of growing concerns again that the central bank may give us a more large rate increase, which will make the borrowing money more difficult and expensive. The rate hike also causes economic pain by slamming the brake on the economy, causing high levels of unemployment, or even recession.

Currently, the markets are predicting a 77% probability that the Fed will increase us the rate of 25 basis points in its next meeting that stops at the end of the month.

-Karistin