The inflation crisis is now behind us. That was the (initial) response from the market to today's cooling inflation report, where annual inflation declined for an 11th straight month (thank you base effect). {chart} ... and which still saw core CPI rise 0.4% which annualizes to around 5%, yet which was enough to convince traders that there will be no rate hike tomorrow (odds collapsed from 25% to below 10%), and odds of a July hike also dropped sharply from 90% to below 70%.{chart} And while it is distinctly possible that the initial euphoria may fizzle after Timiraos gets his marching orders and publishes his ... (full story)