From ZeroHedge:
After The CPI: Hike 25, Pause Or Cut? Here Are Wall Street's Reactions
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...And while we wait to see what Credit Suisse does, here is a snapshot of Wall Street analyst and strategist reactions to today's CPI print.
Ian Lyngen, rates strategist at BMO
“Overall, this is an inflation update that, taken as a sole input, would suggest that a 25 bp hike next week is a foregone conclusion. Alas, the regional banking stress leaves next week’s decision as a wildcard until there is greater clarity on the success of limiting the contagion to the rest of the banking sector from SVB/Signature.”
Ira Jersey BBG Intel Chief US Interest Rate strategist
“The data are just strong enough that the Federal Reserve is clear to hike 25 basis points next week. The challenge for the Fed will be communicating that it’s prepared to help financial-sector liquidity, but still needs to fight inflation. For the Treasury market, we think the long end will remain in the old November to February range of 3.32% to 3.9% until the Fed meeting, while the front end may unwind some of Monday’s rally after these data.”
Anna Wong, Bloomberg Economics’ chief US economist:
"On a 1-month, 3-month, or 6-month annualized basis — metrics that Fed officials use to gauge inflation momentum — February’s headline CPI was running at 4.5%, 4.2%, 4.3%, respectively, with the two longer measures up from the previous month. On the other hand, core was up across the board: at 5.6%, 5.2%, 5.1%, respectively. The robust core CPI print is bad news for the Fed’s preferred PCE gauge. The 12-month change in core PCE inflation may accelerate to 4.8% from 4.7% for February, both far above the 2% target. That’s the opposite direction of where the Fed wants to it to be moving."
Dennis DeBusschere, founder of 22V Research:
“Net-net, this is on the hot side, but not game-changing. The Fed is very focused on labor data and that was slightly dovish, which is why futures are not changing rate-hike odds much post the data. Expect yields to keep moving up as financial stability concerns go away. That is the key to moving rate hike odds up (or not) over time. The CPI was not a game-changer.”....
....MUCH MORE, including their intro.
Earlier from the BLS:
CPI UP 0.4% In February, 6.0% Year Over Year, Shelter, Services And Food Lead Prices Higher
