REFI - Insidious Inflation
2024-03-17 09:00:00 ET
Summary
- U.S. equity markets declined for a second-straight week as benchmark interest surged to the cusp of three-month highs after a critical slate of inflation data showed uncomfortably elevated price pressures.
- Posting a second week of declines following a stretch of 16-of-18 weekly gains, the S&P 500 declined by 0.4% this week. while small-caps and mid-caps were under more pressure.
- Real estate equities- the most "Fed-sensitive" segment of the economy- were slammed this week as renewed rate headwinds sapped much of the remaining upside momentum following an otherwise strong earnings season.
- Fueled by a reacceleration in energy prices driven by ongoing geopolitical turmoil, both the Consumer and Producer Price Index reports were hotter-than-anticipated, while survey data reflected pessimism that inflation is indeed under control.
- The "insidious" inflation prints pushed expectations of the Fed's first rate cut to the back half of 2024. While "real-time" inflation has been more contained than the CPI metric would indicate, the rebound in energy prices has negated the deflationary impacts of lagging shelter prices.
Real Estate Weekly Outlook
U.S. equity markets declined for a second straight week as benchmark interest surged to the cusp of three-month highs after a critical slate of inflation data showed uncomfortably elevated price pressures in February. Fueled by a reacceleration in energy prices driven by ongoing geopolitical turmoil, both the Consumer and Producer Price Index reports were hotter-than-anticipated, while survey data reflected pessimism that inflation is indeed under control. Ahead of the Federal Reserve's policy meeting this week, the insidious inflation prints pushed expectations of the Fed's first rate cut to the back half of 2024....
Insidious Inflation