According to the Bureau of Labor Statistics (BLS) the U.S. annual inflation rate was unchanged at 3.7 percent in September. There was a rise at a higher-than-expected pace of 0.4 percent in the Consumer Price Index (CPI) month over month. The largest contributors to the CPI in September were shelter, which rose 2.1 percent, and gasoline costs, which rose 0.6 percent. The cost of housing has soared with the average mortgage payment and rent being over $2000. The U.S. Dollar Index (DXY) gauges the dollar against a basket of foreign currencies. DXY rallied around 106.00 and has soared more than 6 percent in the last quarter. Despite hiccups in early 2023, the U.S. dollar has had a strong year. Fed officials are not in agreement regarding another interest rate hike. Some say interest rates are high enough, but “a majority of participants judged that one more increase in the target federal funds rate at a future meeting would likely be appropriate.”
