Fed In Focus After Inflation Hits 40-Year High – What’s Next?

This is now the sixth month in a row that has seen a significant jump in inflation – prompting the Fed to finally admit that they no longer view inflation as “transitory”.

Traders were always unconvinced by the central bank’s characterization of “inflation as transitory” and viewed it a major policy mistake. This is likely to be remembered as the worst inflation call in the history of the Federal Reserve.

November’s Inflation data has presented the Fed with its biggest dilemma ever on whether to stick with the current plan of concluding its quantitative easing program by July 2022 or moving much quicker, which would also pave the way to raise rates from near zero much sooner. That debate is expected to happen at the central bank’s FOMC policymaking meeting this week on December 14-15.

Other major market-moving events that traders will not want to miss out on include; the highly anticipated interest rates decision from the European Central Bank, U.S Producer Price Inflation figures and new developments around the rapidly spreading Omicron variant.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.