Hot Inflation Reading Heightens Fed Guessing Game: Traders React
- There’s concern that rising prices could be here to stay
- Consumer index posts biggest gain in more than a decade
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The biggest year-over-year increase in consumer prices in more than a decade rattled financial markets, with highly valued tech stocks tumbling and Treasury yields spiking higher.
The reading contrasts with the sharp price plunge in April last year when the pandemic sent much of the economy into lockdown. The Federal Reserve has long warned that it won’t rush to react to what it says will be uneven data. But with prices rising across industries and supply bottlenecks mounting, traders have grown concerned that inflation is here to stay.