Anticipated inflation data and higher interest rates create hush on Wall Street
Wall Street was subdued today, as stated by the Associated Press, following recent reports that could cause the Federal Reserve to make further interest rate increases in an ongoing attempt to stem four-decade high inflation. Recent data showed the jobs market in March was stronger than projected, and while economists are hopeful inflation will have slowed over the past month, it is expected to remain well above federal targets.
The strategy of raising interest rates to slow inflation carries with it an increased risk of recession and the potential for a drop in the prices of stocks, bonds, and other investments; nevertheless, the Federal Reserve has raised interest rates at every meeting over the past year with the idea of slowing the economy as a whole to curb inflation.
The latest U.S. government monthly update on consumer level prices across the economy will be released Wednesday of this week. Government reports on wholesale inflation and retail sales will be released Thursday and Friday, respectively.