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US Core Inflation Remains Hot, Key Will Be PCE
US core CPI confirmed expectations that underlying inflationary pressures in the US economy remain too hot for the Fed’s liking which leans against market pricing for a cut as soon as the March meeting. The underlying details (here) reinforced this takeaway and I’ll point out what met expectations and where there were surprises. The USD is slightly firmer post-release. Yields were marginally affected albeit volatile thus far. Stocks are flat. Core inflation (ex-food and energy) landed at 0.31% m/m SA with headline CPI up by 0.3% m/m SA. Both readings met my expectations while core met consensus, but headline was ... (full story)