⚠️ SUMMARY OF US APRIL CPI REPORT
Image
SUMMARY OF US APRIL CPI REPORT:
Much to the satisfaction of Fed Chairman Jerome Powell, CPI comes in cooler than expected.
US CPI rose 0.3% on the month, below estimates for a gain of 0.4%.
Headline CPI inflation increased 3.4% Y/Y, matching expectations and slowing from 3.5% in March.
U.S. core CPI rose 0.3% M/M, meeting estimates.
Headline core CPI was up 3.6% Y/Y, decelerating from an increase of 3.8% in March. That is the lowest since April 2021.
Instant Reaction:
Stock Futures Rally $E-mini S&P 500 - main 2406(ESmain)$
U.S. Dollar Tumbles $USD Index(USDindex.FOREX)$
Bonds Yields Drop $US10Y(US10Y.BOND)$ $iShares 20+ Year Treasury Bond ETF(TLT)$
Key Takeaway:
The April CPI Inflation report could give the Fed the confidence to begin laying out the carpet for rate cuts in the months ahead.
It’s going to take a minimum of three or four soft inflation prints before I think they’re ready to cut rates, but this would be a start.
Taking that into consideration, the Fed is stuck in that holding pattern as they await more data and try to figure out what to do next.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- MIe·05-16Deflation trend good for rate cuts this year and market upsideLikeReport