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On the SPOT blog (09/30/2022) [T..]

Writer: Salyl BhagwatSalyl Bhagwat

Wall Street has wrapped up the third quarter in red. This was perhaps the worst September performance for all major US indices in well over a decade. Today's economic data showed that consumer spending increased in August but so did the Personal Consumption Expenditure (core PCE increased too). This might suggest that economy is still in reasonably good shape but inflation remains out of control. That suggests that Feds will stay the course for a while in their attempt to bring down inflation. Brainard's comments today might have also set the expectations that quantitative tightening isn't going to start any time soon.

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