CPI reading places investors on alert ahead of FOMC meeting on Thursday

CPI reading places investors on alert ahead of FOMC meeting on Thursday. US stocks rose overnight, extending a two-day advance in the S&P 500 Index, as smaller companies rallied before the Fed's monetary policy decision tomorrow. With the overnight release of CPI figures some investors are focusing in on the prospect of rates rise expectations being brought forwards. The most recent CPI readings come in at around the Fed's target policy of 2%. With some investors suggesting the Fed could read this as a catalyst for pulling forward rate rises to stave of inflation. A pickup in inflation lessens the threat of a prolonged drop in prices that hurts economic growth, giving Fed officials reason to continue to scale back their unprecedented bond-buying program. Related article via Bloomberg here: (VIEW LINK)