Forex
Fed Hike, Inflation Trends, and Oil Prices Unleash Volatility
The Federal Reserve delivered a unanimous 25 bps rate hike in its latest decision, with the median forecast showing one additional 25 bps increase this year. US equities finished higher as a result.
Retail sales rose 1.2% in August, reinforcing the economy's resilience despite inflation concerns. The final estimate for August inflation in Europe came in at 3.2%, slightly below forecasts.
In the UK, inflation rose to 3.1% in August, with energy costs a major factor. The Bank of England held rates steady as expected, with Governor Bailey stating that policy 'may have to tighten' if the conflict in the Middle East persists.