Core inflation rose 0.3% in August against a 0.2% forecast, and the annual numbers landed exactly in line at 3.4% headline and 2.4% core. Going in, futures put a Fed hike next week at about 70%. Michael Reid of RBC Capital Markets argues the Fed should stay on hold, because inflation and debt are already squeezing consumers at the bottom of a K-shaped economy. George Catrambone of DWS says it gets forced into a hike whatever the data shows, and he said so before the number printed.
Featuring:
Julie Hyman, Host, Yahoo Finance
Jake Conley, Breaking Business News Reporter, Yahoo Finance
Michael Reid, Head of US Economics, RBC Capital Markets
George Catrambone, Head of Fixed Income and Head of Trading, Americas, DWS
Timestamps
0:00 What the estimates were, and what the Fed was watching
1:00 What number points to a hike
1:32 Why the market and economists disagree
2:30 The K-shaped economy, and who a hike hurts
5:01 The numbers land: 0.4% headline, 0.3% core
5:59 What the bond market did in the first minute
6:44 Where the pressure is showing up in core goods
7:33 Shelter, energy and the July reversal
10:00 When the war stops being something to look through
11:29 How a rate rise actually reaches inflation
13:41 Why equities are near records through all of it
15:38 What a hike does to the long end of the curve
16:36 The deficit, entitlements and a normal rate environment
#CPI #Inflation #FederalReserve #RateHike #Markets #YahooFinance
==
AlphaSpace by Yahoo Finance: A Professional-Grade Investment Platform Built for Everyday Investors.
👉 https://finance.yahoo.com/about/promos/gold/alphaspace?ncid=100003571
source
