TLT - CPI May 2024: Best Data In Years May Not Change Fed Rate Cut Timing

2024-06-12 10:50:41 ET

Summary

• Some of the best CPI numbers in years.
• Downside surprises in All-Items, Core and Super-core, driven by the latter.
• The downside surprise was driven by volatile items, so some caution is warranted.
• The Fed can afford to be patient for several months before lowering rates -- if long-term bond yields fall, as we expect.

The Consumer Price Index (CPI) Report was published on June 12, 2024, at 8:30 AM. The report contains information about changes in the prices (inflation/deflation) of a wide array of goods and services purchased by consumers in the US during the month of May 2024.

In this article, we will walk readers through the most important employment statistics derived from both surveys. However, we will be providing a deep breakdown of the CPI Report. We will also discuss the likely implication of the report for bond and equity markets....

For further details see: