Charles Evans and Raphael Bostic, Fed governors from Chicago and Atlanta respectively, are among the U.S. central bank’s doves. So, their remarks suggesting mid-2022 rate hikes could be “appropriate” shows that the transitory inflation narrative may be wearing a bit thin.
Their comments on Thursday came as data showed weekly jobless claims now just a whisker above levels seen in March 2020, just before the pandemic hit. Jobless benefits rolls also are at a 20-month low.
Still, all this failed to stop the equity juggernaut, which saw the S&P 500 and Nasdaq closing at record peaks, lead by tech and retail, both of which are sensitive to higher borrowing costs.
Wall Street futures point north, as are European bourses, where French and German shares have notched record highs.
In Britain too, retail sales snapped a five-month streak of falls to rise 0.8% in October, a bit more than forecast.
Coming the same week as robust inflation and employment figures, the data may cement expectations for a December Bank of England rate rise.