Pressure on the Fed Rises as the CPI Hits a 40-year High

Real Vision: Finance & Investing

Real Vision

Investing, Business News, News, Business

4.1 • 1.1K Ratings

🗓️ 11 February 2022

⏱️ 39 minutes

🔗️ Recording | iTunes | RSS

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Summary

The Bureau of Labor Statistics reported this morning that the Consumer Price Index for January 2022 was up 0.6% and 7.5% year over year. St. Louis Federal Reserve Bank President James Bullard said he’s become "dramatically" more hawkish in light of the hottest inflation in nearly 40 years. Bullard, a voting member of the Federal Open Market Committee, would now like to see a total of 100 basis points of rate hikes by July. In the aftermath of Bullard’s comments, federal funds futures are pricing in a 60% chance of a 50-basis-point hike in March. Rent has gone up nearly 30% in some cities, but the grass isn’t greener for would-be homeowners. U.S. mortgage rates have surged to a two-year high, with the average 30-year fixed rate up to 3.69% from 3.55% last week. Meanwhile, the European Commission has raised its inflation forecast for 2022 to 3.5% from 2.2% due to high energy prices stemming from geopolitical tensions in Eastern Europe. Thomas Thornton, founder of Hedge Fund Telemetry, joins Real Vision’s Ash Bennington to discuss today’s CPI report and what it means for the Federal Reserve, markets, and your portfolio. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/3swruR5 Learn more about your ad choices. Visit podcastchoices.com/adchoices

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0:35.2	Welcome to the Real Vision Daily Briefing.
0:36.8	It's Thursday, February 10, 2022.
0:39.6	I'm Ash Bennington.
0:40.6	Today I'm joined by Tom Thornton, founder of hedge fund telemetry.
0:45.4	It's a big day out there, markets in motion, US equity markets selling off.
0:50.6	I'm looking at the closing numbers right now.
0:52.6	S&P 500 hovering just above the 45 handle, 45-04 off on the day down, 1-spot-8-1%.
1:01.2	NASDAQ down more than 2% on the day, closing out the trading at 14,185.
1:09.4	Dow Jones industrial average also off almost 1-spot-5%, closing at 35,241.
1:17.6	Tom, obviously a lot happening right now.
1:21.2	Hot number coming in on the CPI print for last month, 7.5% highest number in 40 years.
1:29.2	So much going on, lots happening in the bond markets.
1:32.2	How do you contextualise it all?
1:34.0	How do you make sense of it?
1:36.2	Yeah, today was just an extraordinary day.
	...

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