November 14, 2022 | Inflation is finally cooling off… On Thursday, Nov. 10, stocks had their best day since Apr. 2020. Home prices are falling faster than in ’08… AND weaker home prices are still not reflected in the inflation data. This could prompt further downward pressure on inflation. Source: thedailyshot
...November 7, 2022 | This week the Fed raised its rates +0.75% and had a more hawkish tone. In October, long-term inflation expectations unhinged from the 2% target, moving back toward the 2.5% level. Further from 2% = Hawkish Fed. Closer to 2% = Dovish Fed. Source: thedailyshot, Source Financial Advisors
...October 17, 2022 | While headline inflation slowed marginally, the all-important Core reading came in hotter than anticipated, prompting a market selloff. Higher Core Inflation incited fears of entrenched higher prices, which could push a more aggressive Fed. Source: thedailyshot, BoA
...October 17, 2022 | …and on the other hand, monthly figures for inflation have been slowing from their peaks in the height of summer. Headline inflation over the past 3 months annualized has slowed to a rate of 2% year over year, which is at the Fed’s desired target. What happens next? Source: Quillintel, Gavekal
...October 17, 2022 | Finding more evidence of supply-driven inflation alleviating: Prices producers pay for goods in China came in lower than anticipated, and has been moving lower throughout ’22. Good news as China’s Producer Price index (PPI) has historically correlated with the U.S. Source: thedailyshot, Allianz
...October 10, 2022 | The U.S. Jobs report showed signs of a looser labor market. The Fed wants lower inflation and labor markets are one of the key factors driving the Fed’s decision for continued aggressive monetary policy. Looser Labor Market = Lower Wage Gains = Lower Inflation Source: thedailyshot
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