Economic & Market Watch

In the News

Economy

• U.S. consumer prices accelerated in August, with gasoline costs rebounding and core inflation exceeding forecasts, reinforcing expectations that the Federal Reserve may raise interest rates at its September meeting. Markets are increasingly pricing in a rate hike this week, with interest-rate futures implying roughly a 90% probability following higher-than-expected inflation data and persistent price pressures across the U.S. economy.
• Mounting inflation worries and expanding borrowing needs from both Washington and corporate America fueled a sharp sell-off in Treasurys, driving the U.S. 10-year yield above 5% for the first time in nearly three years.

Markets

• West Texas Intermediate crude oil futures rose to over $104/barrel, extending recent gains after attacks on Saudi energy infrastructure and shipping routes heightened concerns over global supply disruptions and Middle East energy security.
• U.S. stocks opened lower as investors sold major artificial intelligence (AI)-related technology shares after several industry leaders called for a slower pace of AI development, weighing on the Nasdaq and semiconductor sector.

Current Events

• Natural gas consumption for data center electricity generation is expected to increase by 15 billion cubic feet per day by 2035, according to BloombergNEF. That additional demand alone would exceed the current natural gas consumption of every country except China, Russia, Iran and the U.S., based on U.S. Energy Information Administration data. The latest estimate also represents a significant upward revision: It is more than double BloombergNEF’s December forecast of 6.9 billion cubic feet per day.
• Gulf states postponed a planned meeting with Iran as new Houthi attacks and escalating regional conflict continued to raise concerns about Middle East stability and global energy supplies.

Meet the Team

CFC's economic research team—John Suter, Sam Kem and Antony Davies—share their expert, yet easily digestible, perspective on what you need to know.

Have feedback about the podcast? A topic you'd like the EMW team to cover? Get in touch at economicresearch@nrucfc.coop.

Source: U.S. Energy Information Administration, Trading Economics