The day ahead: Fed takes a toll on inflation

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The day ahead: Fed takes a toll on inflation

Nov 25 Reuters -- A look at the day ahead from Sujata Rao. The data released on the eve of the holiday showed robust consumer spending, jobless claims at the lowest levels since 1969 and a 4.1% monthly rise in the core PCE inflation index.

The figures reinforced the picture of an economy moving away from the rest of the world still struggling with COVID 19 fallout. The U.S. Fed took a toll on rising inflation, according to minutes from its last meeting on Wednesday.

It's a piquant contrast to Europe, where data shows inflation and surging coronaviruses hit German consumer morale, which is back at June lows. Japan's economy contracted 3% in the third quarter, a contrast to the U.S. 2% plus third quarter expansion.

On Wednesday, the stock markets in Asia and Europe were higher as a result of Wall Street. One of the results of the U.S. data beats is a dollar in beast mode, according to the words of the Pepperstone brokerage in Australia. South Korea has raised interest rates for the second time this year and increased inflation forecasts.

Turkey is of course the outlier. President Erdogan's refusal to countenance higher interest rates has tipped his country into a crisis.