The September consumer price index report showed an 8.2% year-over-year increase in inflation, beating market estimates. Michelle Meyer, a chief economist at the Mastercard Economics Institute, said, “The more inflation comes in above expectations, the more they're going to have to prove that commitment, which means higher interest rates and cooling in the underlying economy.”
With the Fed’s fourth consecutive 75-bps interest rate hike in its meeting next month seeming almost certain amid alarmingly and persistently high inflation numbers, the market volatility may not soon lessen. The CBOE Volatility Index has climbed more than 80% year-to-date.
