A take on the May inflation data from the US from head of multi-sector investing at Goldman Sachs Asset Management:
- a good start
- FOMC will need to see more like it before they can commit to a September rate cut
- “While September may be on the table, today would have had to be the first of a handful of inflation data prints that went right, which it did.
- It does remain challenging, however for inflation to cool with the backdrop of the summer’s heat,”
- This is good news, but we will need more of it.”
The CPI data and more on FOMC meeting can be found from here:
To point out the obvious, everyone FREAKED OUT in Q1 when the CPI rose. Now, its still at the same level. Why is everyone so suddenly gung ho on a near-term rate cut? If you say a September rate cut because of the election in November, I’ll accept that. But otherwise I’ll just continue to wonder. Even the dots now skew towards only one cut this year and to me that means December. Merry Christmas.
This article was written by Eamonn Sheridan at www.forexlive.com. Source