US core CPI walloped Treasuries and sent shivers down the spines of anyone who still thinks the Fed should be in a big rush to cut. Core CPI was up by 0.4% m/m (0.39% to be exact) which only three out of 68 forecasters guessed correctly, 15 who went with 0.1 or 0.2 did not, and 50 others came close to. It was hotter than the nowcast estimates from the Cleveland Fed. The readings are starting to creep higher again over recent months from the summertime lows (chart 1). {chart} The core CPI reading probably means that core PCE that is due out on February 29th is tracking about 0.3% m/m SA. If so, then that would be ... (full story)