close video Inflation ‘beast’ was bigger than Fed’s ‘transitory’ forecast: Scott Martin
Kingsview Asset Management CIO Scott Martin discusses if investors trust the Fed and whether home prices need to correct on ‘Cavuto: Coast to Coast.’
An inflation measure closely watched by the Federal Reserve rose faster than expected in January as consumer prices remain stubbornly high, according to new data released Friday.
The personal consumption expenditures (PCE) index showed that consumer prices rose 0.6% from the previous month and rose 5.4% on an annual basis, according to the Bureau of Labor Statistics. Those figures are both higher than the 0.2% monthly increase and 5.3% headline jump recorded in December, a worrisome sign for the Federal Reserve as it tries to crush runaway inflation with the most aggressive series of interest rate hikes since the 1980s.
Core prices, which strip out the more volatile measurements of food and energy, climbed 0.6% from the previous month and 4.7% year-over-year, faster than Wall Street economists expected.
Markets slumped after the report, with futures tied to the Dow Jones Industrial Average shedding more than 300 points.
This is a developing story. Please check back for updates.