Fed's Jefferson Warns Inflation 'Too High for Too Long,' Oil Risks Persistence
IXIC sits 30% above its 52-week low of $20,690.249.
Summary
Fed Governor Jefferson stated inflation has been 'too high for too long' and flagged the risk that elevated oil prices could make high inflation more persistent. He expects inflation to be elevated in the short run before resuming its decline toward the 2% goal. Jefferson also said the labor market is stable but has lacked dynamism, though that seems to be changing somewhat, with a variety of job prospects. This is a hawkish signal from a Fed official, reinforcing the central bank's commitment to tighter policy. The Nasdaq is trading near its 52-week high, making it vulnerable to any shift in rate expectations. The comment adds to recent market concerns about oil-driven inflation, following a series of reports on rising crude prices and their impact on equities.
At the time of this announcement, IXIC was trading at $26,952.74 on NASDAQ in the Finance sector. The 52-week trading range was $20,690.25 to $27,288.79. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Mace News.