CPI & Jobless Claims Watch in the US and Its Market Impact
The Consumer Price Index (CPI) and weekly Jobless Claims data in the United States are key indicators for market participants to gauge the direction of the Federal Reserve's monetary policy. The CPI reflects inflation levels; if inflation rises above expectations, markets anticipate potential interest rate hikes, which can pressure stocks and bonds. Conversely, slowing inflation may give the Fed room to ease policy.
Meanwhile, Jobless Claims indicate the health of the labor market. Low claims suggest a strong economy but could delay rate cuts. On the other hand, rising claims may raise recession fears, although they also spark hopes for monetary easing. The combination of these data points heavily influences the movement of the US dollar, stock indexes, Crypto and bond yields.