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US: Inflation’s fight seems under control, the markets have the upper hand
November’s inflation numbers delivered good news for the Federal Reserve (Fed) even though the Consumer Price Index (CPI) was higher than what markets were expecting, with shelter costs surprising to the upside. Meanwhile, the preliminary inflation expectations numbers from the University of Michigan’s Survey of Consumers showed that short, as well as long-term inflationary expectations, came down considerably in December, which will continue to support the Fed’s disinflation campaign. But the real fight is the Fed fighting market expectations for lower rates as soon as March of 2024. That fight is still in its ... (full story)