- Today’s accelerating CPI print accelerated the distortions all over the Treasury market such that it has taken a shape along key parts of it unseen in very, very long times.
- The latest CPI along with last week’s payrolls each will serve to justify Jay Powell’s likely super-charged hawkishness; therefore, ST rates.
- The latest CPI along with last week’s payrolls each will serve to justify Jay Powell’s likely super-charged hawkishness; therefore, ST rates. Jay Powell and the FOMC – largely because of expectations theory – cannot help but focus on the headline CPI rate (another 40-year high, this time 7.48% unadjusted year-over-year) rather than the implications of the rest of the data.
For further details see:
Sky High CPI And The Surging Conflict Of Interest (Rates)