-
US CPI and the FOMC — Haste Makes Waste
Most of a quarter point Fed hike is back to being priced for next Wednesday’s decision in the wake of an upside surprise to core CPI and further evidence of stabilizing markets. Major rallies across US regional banks are unfolding on day two of the aftermath of weekend developments. I’m still not buying the case for the Fed to pause next week—let alone cut . That seemed to be an overly hasty and impulsive view in the markets. I think there remains a strong case to hike 25bps which is my expectation. These developments add to why and on top of previously expressed views (here) on how the magnitude and scope of ... (full story)