As investors continue to digest Wednesday's U.S. consumer-price index report, Jefferies is coming out with a relatively bold conclusion.
As investors continue to digest Wednesday’s consumer-price index report for April, Jefferies, one of the more than two dozen primary dealers that trade directly with the New York Fed, is coming out with a relatively bold conclusion.A pair of economists at the firm say April’s CPI “shows no evidence that inflation has really ‘peaked.
What Jefferies is pointing out is that “this inflation is a heck of a lot more persistent than the Fed is discounting,” said John Silvia, founder and chief executive of Dynamic Economic Strategy in Captiva Island, Fla. “That creates a lot of uncertainties in the market, making it much more difficult for everyone.”
Investors can be rattled by rhetoric about the size of Fed rate hikes because it triggers the prospects of more hikes to come, as well as the need to mark down future stock valuations and adjust one’s thinking about the path of inflation, he said via phone Wednesday. Though the annual headline rate dropped to 8.3% from 8.5%, “the only reason y/y inflation slowed was base effects,” Markowska and Simons wrote in a note Wednesday. “There is no sign of a sequential slowdown in underlying price pressures.”
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
USD, Gold, S&P 500: How Have Markets Reacted to US CPIAs market participants await the US CPI report, it appears markets are somewhat front-running a possible lower than expected number with the US modestly, while bonds and equities have edged higher. Get your market update from JMcQueenFX here:
Leer más »
Breaking: US annual CPI inflation falls to 8.3% in April versus 8.1% expectedThe annual pace of headline inflation in the US according to the Consumer Price Index (CPI) fell to 8.3% in April from 8.5% in March, according to the
Leer más »
EUR/USD looks firm and revisits the 1.0570 region, focus on US CPIThe single currency regains some composure and lifts EUR/USD back to the 1.0570 region on Wednesday. EUR/USD up on USD weakness, ECB EUR/USD resumes t
Leer más »
CPI, PPI: Markets look for signs of U.S. inflation peakIn the wake of the 50-basis-point interest rate hike by an increasingly hawkish Federal Reserve, markets have gyrated wildly ahead of this week's U.S. economic data, which will be closely parsed for signs that inflation is peaking.
Leer más »
US inflation expectations slump to 10-week low ahead of CPI releaseUS inflation expectations, as per the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, continue to disregard the reflat
Leer más »