-
US Core CPI Fans Risk of Prematurely Declaring Victory
“Do I feel lucky?” Federal Reserve Chair Powell might be well advised to borrow that very line from a Clint Eastwood movie when he delivers his press conference next Wednesday. That’s because a soft patch for core CPI burned a touch brighter than expected and is a highly tentative warning sign that this could merely prove to be the fourth false soft patch in underlying inflationary pressures during the pandemic era. Rates and the dollar largely shook it off. The modest upside surprise will likely weigh on the minds of FOMC participants as they submit forecasts on Friday ahead of next Wednesday’s FOMC meeting. ... (full story)