Macro Quick Hit: Will The Fed Get Faked Out On Inflation?
The latest PCE prices data showed a slowing in the year-over-year core inflation rate. While it appears that Fed officials still mostly view inflation as being close to their 2% target some have made references to the recent softer readings. We do not think that underlying inflation is slowing, however, there is a technical reason why inflation rates may moderate in the near-term. We argue why the Fed should avoid getting faked out by either a slowing in as-reported core PCE price gains late in a year or by a decline in inflation breakevens that has coincided with a drop in oil prices.
RDQ Economics provides global macroeconomic consulting services with an emphasis on U.S. economic fundamentals and monetary policy.
Our views are driven by consistent application of classical economic and monetary principles and has generated superior anticipation of changes in the stance of monetary policy and of movements in economic growth and inflation.
The founders of RDQ Economics, John Ryding and Conrad DeQuadros, have a combined experience of 26 years on Wall Street, 12 years of experience in central banking at the Federal Reserve and the Bank of England and nine years in the independent research space. John and Conrad have worked closely with fixed income, foreign exchange, and equity traders and portfolio managers, which has enabled their analysis and advice to be tailored to a clientele that is focused on trading and investment decisions.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.