US CPI Reaction: Headache for Powell not so much markets
Hot on the heels of today’s awaited US CPI report, we offer our rundown of the most noteworthy figures. Safe to say the Fed wasn’t helped along in achieving their target.
Today’s US CPI report was clearly hawkish on the surface, but looking closely, it is not all too demoralizing for those betting on continued risk-rallies and a path back to target.
Clear path and further downside to OER according to Zillow and repeat rent. Though a modest surprise, components are not alarming albeit not helping Fed’s intentions.
June cuts aren’t off the table from today’s report, but more (rhetoric) timidness given strong economic data seems probable.
Chart 1: CPI report decomposed
Hot on the heels of today’s awaited US CPI report, we offer our rundown of the most noteworthy figures. Safe to say the Fed wasn’t helped along in achieving their target.
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