NAB – The Morning Call · Eye-popping inflation doesn’t faze the Fed

Eye-popping inflation doesn’t faze the Fed

Thursday 11th November 2021

The inflation numbers from the US have been eye popping. That’s the description by the Fed’s Mary Daly as US CPI hits 6.2%, a 30 year high. NAB’s Gavin Friend points out that there are still four million people in the US who lost their jobs through COVID who aren’t back in the workforce, and the Fed will continue to use that reasoning for not lifting rates. But markets are likely to revert to their expectations that the bank will be forced to move sooner than it intends. Australia’s labour market data today, for October, will still be held back by lockdowns and the UK’s GDP read for Q3 will provide a useful barometer on an economy whose return is slower than anticipated, and will have taken a knock with increased fuel costs.

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