The 8.3% year-over-year increase in Consumer Price Index (CPI) for August has surpassed economists’ estimates and confounded the hopes of investors expecting ease in prices. An unexpectedly hot inflation report guarantees the Federal reserve’s hawkish stance, further enhancing the odds of an already weak economy slipping into a recession.
The Fed officials are expected to raise interest rates by 75 basis points for the third time in its meeting this week to tame the stubborn inflation. The increased market volatility and the Fed’s unrelenting hawkishness spell trouble for firms that need funds to sustain and grow themselves.
