Warmer Inflation Seen as Insufficient for October Rate Hike
Dow Jones10-14
0922 ET - The warmer-than-expected core inflation data bolsters the case for more rate increases, but likely wasn't hot enough to warrant an October hike, Franklin Templeton Institute's Jeff Schulze says in a note. The data comes after dovish comments from top Federal Reserve officials that suggest the bar is high for a hike at the upcoming FOMC meeting this month, the strategist says. Still, today's data should be a modest headwind to risk assets, Schulze says. Expectations for near-term rate hikes put pressure on the long end of the yield curve, strengthening the dollar while weighing on equity valuations, he says.
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