BlackRock is the world’s largest asset manager. The firm’s chief investment and portfolio strategist for the Americas, Gargi Chaudhuri, takes a cautious view of the best CPI report:
- The CPI was better than expected (@0.3% m/m and 3.4% y/y) (0.4 and 3.4 respectively)
- but higher and longer interest rates from the Federal Reserve will likely still be needed
- “This paper reiterates that even if inflation is moving in the right direction, a more restrictive monetary policy with interest rates remaining on pause is the appropriate monetary policy for this macroeconomic environment. »
Read more about CPI data (and retail sales) here ICYMI:
- Forexlive Americas FX News Conclusion May 15: Green Grass Ahead as CPI/Spending Under Control
Know, however, that people are excited!
- US stocks close at record highs as market looks beyond inflation
- Fed Goolsbee says if the decline in housing inflation seen in the April CPI continues, that’s great!
This article was written by Eamonn Sheridan at www.forexlive.com.
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