US core CPI put in another hot showing that remains unacceptably high and sticky in relation to the Federal Reserve’s goals. Core goods price inflation has definitely returned while core service price inflation remains sticky. Markets reacted by initially putting a bid to the US front-end before reversing all of that move and then some, by driving an initially softer dollar on a DXY basis before reining in much of that, and by pushing the S&P500 up by another 1.6% which is holding. There is next to nothing priced for tomorrow’s FOMC decision hence the no-surprises Powell probably won’t surprise anyone, rightly or ... (full story)