Economics professor warns October’s inflation victory is ‘too early,’ tries putting a ‘political drag’ to bed – Fox Business

by | Nov 10, 2022 | Financial

Fox News contributor and The King’s College economics professor Brian Brenberg gives the ‘Eeyore’ analysis on October’s CPI report. While markets may be giddy to see a Federal Reserve pivot after a cooler-than-expected inflation report, one economics professor is providing the “Eeyore” analysis on October’s consumer price index (CPI). “There’s a political bias to declare victory really early so that this issue can get put to bed as a political drag,” Fox News contributor and The King’s College professor Brian Brenberg told Fox News Digital Thursday. “But the fact is, economically, we have a very, very, very long way to go with this. And if we pull up early, we risk causing the problem to go on a very long time.”On Thursday, The Labor Department said the CPI, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose 0.4% in October from the previous month. Prices climbed 7.7% on an annual basis. Those figures were both lower than the 8% headline figure and 0.5% monthly increase forecast by Refinitiv economists, a potentially reassuring sign for the Federal Reserve as it tries to tame runaway inflation with a series of aggressive interest rate hikes. It marked the slowest annual inflation rate since January. MARKET EXPERTS EXPLAIN WHY POLITICAL GRIDLOCK IS ECONOMY’S ‘BEST CASE SCENARIO’But with a sign of a declining inflation rate, markets showed indications Thursday that investors are anticipating a Fed rate hike pivot. The Dow Jones Indus …

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