Morning Business Report: Wholesale inflation rises as mortgage rates top 7% and oil surges
Wholesale inflation came in higher than expected last month, increasing expectations that the Federal Reserve could raise interest rates at its meeting next week.
(LILAMAX)- Wholesale inflation came in higher than expected last month, increasing expectations that the Federal Reserve could raise interest rates at its meeting next week.
The odds of a rate hike have climbed to about 70%. The Fed will get one more major inflation reading before its meeting when the Consumer Price Index is released Friday morning.
Meanwhile, the housing market continues to struggle under the weight of higher borrowing costs.
Existing-home sales fell 2% in August, marking the slowest month for sales in more than a year.
Mortgage rates are also climbing. According to Mortgage News Daily, the average 30-year mortgage rate has crossed 7% for the first time in more than a year.
On Wall Street, the Dow fell 300 points Thursday as interest rates moved higher.
The New York Stock Exchange will also commemorate the 25th anniversary of the Sept. 11, 2001, terrorist attacks with a moment of silence and a single bell strike before regular trading begins.
Friday also marks National 401(k) Day, which highlights the importance of saving for retirement.
More than 90 million Americans participate in an employer-sponsored retirement plan. Retirement options can also include annuities, which can convert savings into regular payments designed to provide predictable income during retirement.
Oil prices, meanwhile, have surged above $100 per barrel.
Shipping through the Strait of Hormuz, which carried about one-fifth of the world’s oil supply and a significant amount of natural gas before the war, remains at a fraction of its prewar levels.
