The US CPI report is sufficiently soft for the Fed to shift its focus even further towards labor markets and growth. A weak retail sales report today could impact markets more than the CPI did.

The US CPI report is sufficiently soft for the Fed to shift its focus even further towards labor markets and growth. A weak retail sales report today could impact markets more than the CPI did.
This week’s CPI report aligned seamlessly with our expectations, affirming the anticipated cycle-pattern. Naturally, this begs the question – what lies ahead, and what could break our view? Some additional thoughts for the weekend.