Economics professor warns October's inflation victory is 'too early,' tries putting a 'political drag' to bed
Brian Brenberg: October’s inflation celebration ‘is too early’
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.
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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 Industrial Average climbed more than 700 points; the S&P 500 jumped 3.3%; while the NASDAQ Composite surged more than 4.5%.