Jamie Dimon warns that inflation may remain stubborn after the Federal Reserve raised rates, stocks slipped and Treasury yields climbed, though low unemployment and corporate profitability continue to signal that an economic downturn is not imminent.
Utility bills rose 5.3% year over year in August, surpassing broader energy inflation as grid investment, industrial demand, and data center construction added pressure. Warmer winter weather may provide temporary relief, but Bank of America expects elevated costs to persist.
The contract rate on a 30 year mortgage reached 6.97% as purchase and refinancing applications declined, while rising energy prices, inflation concerns and surging Treasury yields placed fresh pressure on the already sluggish US housing market.
Expectations for Federal Reserve policy have swung sharply, with 86% of CNBC survey respondents anticipating a hike and 55% forecasting multiple increases as oil prices surge and broader inflation refuses to cool.
The 10-year Treasury yield reached 5.041% as surging oil prices fueled inflation fears and traders assigned greater than 92% odds to a 25 basis point Federal Reserve rate increase. Longer maturity yields also hit levels unseen since 2007.
Trump says existing government powers can police AI companies without new restrictions, while Amodei and other technology leaders urge slower development amid warnings about safety, cyberattacks, and the escalating competition with China.
Kevin Warsh must rally a divided Federal Open Market Committee behind an expected rate increase as officials debate persistent inflation, temporary price shocks and whether tighter policy should continue beyond this week’s closely watched decision.
The 10 year Treasury yield briefly crossed 5% as investors weighed persistent inflation, enormous debt issuance and a 90% probability of a Federal Reserve rate increase, while stocks continued to show resilience despite mounting pressure in the bond market.