1 month of in-line CPI not enough to start Fed rate cut countdown: Macquarie
Analysts at Macquarie believe one month of at-consensus core CPI may not be "enough" to start the Federal Reserve's countdown on a rate cut.
Assessing the recent data and its potential impact on the Fed's interest rate policy, the firm said the latest print was as expected but"An in-line print is probably not good enough for the Fed to start a countdown to rate cutting. Fed speakers may affirm this 'guarded' view starting today. So, we don't anticipate much follow-through in FX or UST yields," said Macquarie.
"Even when you subtract 70-80 bps to derive a 'back-of-the-envelope' for the core PCE PI-equivalent, this could still be viewed by the Fed as far from theRisk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.
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