(TheRedWire.com) – On Wednesday, December 14, the Bureau of Labor Statistics reported inflation cooled slightly to 7.1%, a figure much lower than many economists predicted. Still, there was a bit of controversy with the release of the updated number. The government released the news at 8:30 am Eastern time. Yet, approximately two minutes before the data reveal, stock market futures trading surged. On Tuesday, a reporter asked White House Press Secretary Karine Jean-Pierre whether she believed someone leaked the inflation report.
The stock market activity suggested to some that traders might have known about the positive inflation report outcome. Jean-Pierre acknowledged she had seen the reports. She stated she wasn’t aware of any leaks and felt people were putting a lot of emphasis on a relatively minor market adjustment and analyzing too much. The Press Secretary added there were strict security protocols in place to prevent leaks.
WATCH: Bloomberg Reporter Asks If Biden WH Thinks Inflation Data 'Leaked' Because Stock Market Jumped Ahead of Release https://t.co/aBH2WYWILz
— Mediaite (@Mediaite) December 14, 2022
Bureau of Labor Statistics spokesperson Cody Parkinson said there were no indications of a leak. Still, he acknowledged that some government officials received the information before its formal release.
So, why would investors pile in on the report? Experts believed it was a possible sign the Federal Reserve would limit the next round of rate increases. Later in the day, the central bank members voted unanimously to reduce rate hikes from the previous three-quarter point increases to a half-point increase. Still, inflation this year is at its highest point since 2007.
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