Wall St slides as inflation data, policymakers stoke rate worries
Wall Street’s main indexes slid on Tuesday after data showed consumer prices accelerated in January, while hawkish remarks from Federal Reserve officials cemented fears that the central bank will continue raising interest rates this year.
Data showed U.S. consumer prices accelerated in January as Americans continued to be burdened by higher costs for rental housing, suggesting that the Fed was far from pausing its rate increase campaign.
The consumer price index increased 0.5% last month after gaining 0.1% in December, the Labor Department said. In the 12 months through January, the CPI increased 6.4%, more than the 6.2% forecast by economists.
“The number would lead me to believe that they (Fed officials) are not going to change what they have said, which is there’s more work to be done and I think that’s true,” Andrew Slimmon, managing director at Morgan Stanley Investment said.
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