Wall Street Journal | Dow Closes Higher as Israel-Hamas War Rattles Markets

Never Mind Rising Energy Prices, 'The Fed's Job Is Done,' Investor Says

By Eric Wallerstein

After Friday's jobs report unsettled markets, investors are awaiting inflation data for September, due this week, to better gauge the Federal Reserve's next move.

So Monday's surge in energy prices due to the Israel-Hamas war looks ominous: If sustained, it could feed into quicker inflation for October and beyond. But not all investors are too concerned.

"The Fed's job is done," said James Demmert, chief investment officer of New York City-based Main Street Research, which manages roughly $2 billion in assets.

He added that energy makes up just 7% of the consumer price index, and is excluded from the so-called core readings that the Fed favors. Demmert said rising bond yields are doing the central bank's job by tightening financial conditions.

Read the full article here.

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