Tuesday, June 13, 2023

U.S. Inflation: Analysts React

From ZeroHedge, June 13:

"Not Enough For A June Hike": Wall Street Reacts To Today's CPI Report

The inflation crisis is now behind us.

That was the (initial) response from the market to today's cooling inflation report, where annual inflation declined for an 11th straight month (thank you base effect)...


...here is the early reaction from several strategists and economists:

Anna Wong, Bloomberg chief US Economist

“May’s CPI likely won’t alter the FOMC’s inclination to temporarily pause its rate-hike campaign at the June 13-14 meeting. Details of the CPI print show the sort of progress on disinflation the Fed wants to see: Housing rents – expected to drive disinflation over the rest of the year — continue to edge down. The sturdy reading for core goods was driven mainly by used cars, while prices of new cars and a broad set of other goods saw moderating inflation.”

Ben Jeffery, rates strategist at BMO

“Not a strong enough read to warrant the Fed deviating from its telegraphed intention to skip tomorrow’s meeting, and the knee-jerk bull steepening represents a relief move now that the event risk is passed.”