SPTS - On My Mind: Inflation - The Fed's Sticky Wicket
2024-02-15 03:00:00 ET
Summary
- Headline year-over-year inflation still came down - to 3.1% from December’s 3.4% - though remaining above the expected 2.9%.
- Core goods prices declined for the third consecutive month.
- Activity data and inflation numbers all suggest that monetary policy is not too tight at all.
By Sonal Desai, Ph.D., Chief Investment Officer, Franklin Fixed Income
Franklin Fixed Income CIO Sonal Desai discusses why the January inflation print confirms that the "last mile" of disinflation may prove to be a lot harder than markets expect, and investors should brace for more volatility and a possible move of 10-year Treasury yields back in the 4.25%-4.50% range. ...
On My Mind: Inflation - The Fed's Sticky Wicket