Consumer Prices

Core CPI Slumps To 19-Month Lows - Below Fed Mandate

For the first time since October 2015, core consumer prices rose at a pace slower than The Fed's mandate. The 1.9% YoY rise is the weakest print since Sept 2015. The last time this pattern played out - in 2012 - The Fed unleashed Operation Twist and subsequently QE3 to stall the disinlationary dive...

BOE Keeps Rate At 0.25%, Warns Rates May Rise Faster In Case Of "Smooth" Brexit

"...the Committee judges that, if the economy follows a path broadly consistent with the May central projection, then monetary policy could need to be tightened by a somewhat greater extent over the forecast period than the very gently rising path implied by the market yield curve underlying the May projections."

Japanese Wages Fall At Fastest Pace In 2 Years; Kuroda Admits His Job Is "Challenging"

Buying stocks, bonds, and generally printing money willy-nilly is hard work according to BoJ Governor Kuroda who remarked tonight that "the job of a central banker is challenging." Perhaps the reason for his emotional outburst is the fact that Japanese wages just plunged in March - the biggest drop since June 2015 as the economic rebound that we are constantly told about has evaporated once again.

The Turkish People Have Never Been More "Miserable"

Over the last year, as Turkey's 'sultan-for-life' Recep Tayyip Erdogan has increased his dictatorial powers, so the nation's "misery" has increased to record highs. Soaring inflation (amid a collapsing currency) and stubbornly high unemployment have combined with government crackdowns to see increasingly active protests in the streets.

RBC Explains Today's Rush To BTFD

"the missile strikes change NONE of the calculus for me...Thus, the balance of risk remains in favor of upside for now until this muscle memory above (buy risk dips, sell vol) is changed... The near-to-medium-term ‘risk downside’ story to me remains largely about the rates move as ‘reflation’ has broken trend line..."

Abe Advisor Says It's Time To Pull The Plug On QE

Nobuyuki Nakahara, an adviser to Prime Minister Shinzo Abe and an influential former Bank of Japan board member said the BOJ should make a "clean break" from its current policy approach when Kuroda's term ends next spring.