The Consumer Price Index (CPI) for October increased 0.4% sequentially and 7.7% year-over-year, coming in lower than estimates. Despite showing signs of cooling down, inflation remains uncomfortably high. Therefore, the Fed is expected to continue hiking interest rates.
The expected continuation of monetary policy tightening spells trouble for borrowers as borrowing is set to become expensive. However, financial companies will benefit from the rising interest rates as it helps them expand their revenues.
