Losses on the stock exchanges: US inflation is gaining momentum

Inflation in the US is rising faster than expected.

Losses on the stock exchanges: US inflation is gaining momentum

Inflation in the US is rising faster than expected. In May it was 8.6 percent. This is significantly higher than in April and not good news for investors.

High inflation is taking hold in the US. It was 8.6 percent in May, according to the BLS statistics agency. That's higher than expected. Analysts had previously expected inflation to be 8.3 percent for the year - and thus stabilize at the April level.

At the beginning of May, the Fed took the largest interest rate hike in 22 years and raised the key interest rate by half a point to the new range of 0.75 to 1.0 percent. Fed President Jerome Powell signaled hikes of the same magnitude for the June and July meetings.

The stock exchanges reacted to the current inflation figures with price losses. The reason: Now the pressure on the Fed could increase to raise interest rates more than planned. This makes stocks less attractive compared to other forms of investment.

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