Core CPI

RANSquawk Video's picture

PREVIEW: FOMC Monetary Policy Meeting - 28th October 2016





 

  • After the anticipation of the previous meeting, markets focus on the statement and whether the FOMC still see December as a date for lift-off
  • The vast majority expect the Fed to keep the Fed Fund Rate on hold at 0.00-0.25%, however there is a minimal outside bet (~4%) that the Fed will hike rates by between 15-25bps

EXPECTATIONS

 
Tyler Durden's picture

How The U.S. Government "Covers Up" 72% Inflation Before Your Very Eyes





Dear Bureau of Labor Statistics: please pay careful attention to this case study of how your CPI "inflation" gauge, hedonically, seasonally-adjusted or otherwise, is completely inaccurate, and how what you record as 0% inflation is really 72%!

 
Tyler Durden's picture

What Will Mario Draghi Announce Tomorrow: Here Is What Wall Street Thinks





Tomorrow morning Mario Draghi is widely expected to if not announce an extension, or expansion, of the ECB's QE program, than to at least jawbone sufficiently, and push the EURUSD lower from its recently anchored level in the 1.10-1.20 range. But what are the specifics of Draghi's announcement: will he merely expand the monetization limit per security, as he did in early September, will he increase the universe of eligibile securities, or will he simply extend the maturity of the non-open ended QE from September 2016 to some indefinite date? The following list, courtesy of Bloomberg, summarizes what the sellside universe believes Draghi will unveil in just under 12 hours.

 
Tyler Durden's picture

Truth Is Being Suppressed By The Tools Of Money





Global Capitalism is trapped in its own Prisoner’s Dilemma; fourty four years after the end of the Bretton Woods System global central banks have manipulated the cost of risk in a competition of devaluation leading to a dangerous build up in debt and leverage, lower risk premiums, income disparity, and greater probability of tail events on both sides of the return distribution. Truth is being suppressed by the tools of money. Market behavior has now fully adapted to the expectation of pre-emptive central bank action to crisis creating a dangerous self-reflexivity and moral hazard. Volatility markets are warped in this new reality routinely exhibiting schizophrenic behavior. The tremendous growth of the short volatility complex across all assets, combined with self-reflexive investment strategies, are creating a dangerous ‘shadow convexity’ that will fuel the next hyper-crash.

 
Tyler Durden's picture

Peak Debt, Peak Doubt, & Peak Double-Down





Investors are too complacent (the Minsky-Moment).  Too many are still trying to profit from the Fed subsidy of past stimulus. Investors remain loaded in risk assets, incentivized by the need to beat peers and benchmarks and comforted into complacency by the Fed ‘put’. The true level of risk is being ignored. The pervasive mentality of seeking maximum risk has become a terrible risk/reward trade for two main reasons...

 
Tyler Durden's picture

Goldman Mocks "Constitutionally Dovish" Fed, Sees December Rate Hike Odds At 60% To Offset "Credibility Problem"





Q: Why do you still expect the FOMC to hike rates in December?

A: Because the FOMC leadership has said that a rate hike by the end of the year is likely if the economy and markets evolve broadly as expected. Our near-term forecast is similar to theirs, so our baseline is also that they hike.

 
Tyler Durden's picture

Buying Panic Fizzles As Option Expiration Looms





In the absence of any key economic developments in the Asian trading session, Asian stocks traded mostly under the influence of the late, pre-opex US ramp momentum courtesy of another day of ugly economic data in the US (bad econ news is good news for liquidity addicts), closing solidly in the green across the board, led by China (+1.6%) and Japan (+1.1%) thanks in no small part to the latest tumble in the Yen carry trade, which mirrored a bout of USD overnight weakness. And since a major part of the risk on move yesterday was due to Ewald Nowotny's comments welcoming more QE, news from Eurostat that Eurozone CPI in September dropped -0.1% confirming Europe's deflation continues, should only be greeted with even more buying as it suggests further easing by the ECB is inevitable.

 
Tyler Durden's picture

Rents Are Soaring BLS Admits, As Core CPI Comes In Hottest In Over A Year





While the September Consumer Price Inflation report was in line with expectations, with the headline CPI declining -0.2% in the month - the biggest monthly drop since January - and unchanged from a year ago, just as consensus predicted, it was all about the core CPI where attention was focused, and especially one item: rent, which rising at 3.7% Y/Y is now the hottest it has been since the fall of 2007.

 
Marc To Market's picture

The Dollar may Consolidate Before Moving Higher





Yellen's reaffirmation of a likely rate before year-end helped lift the dollar.  Look for some consolidation ahead of the US jobs data.  

 
Tyler Durden's picture

Consumer Prices Rise At Slowest Pace Since 2014 As Airfares Plunge, Car Costs Slide, But 'Rents' Jump





US Consumer Prices (CPI) missed expectations MoM with a mere 0.1% rise (half the expected 0.2% rise). Core CPI (ex food and energy) rose just 0.1% - its weakest growth since Dec 2014 with the biggest drivers being a 5.6% plunge in airfares - the biggest drop since 1995 and a 0.3% surge in 'owner equivalent rents' driven by lodging. Gas prices rose for the 3rd consecutive month (unequivocally good?) but new and used car prices tumbled.

 
Tyler Durden's picture

Gartman Stopped Out Of Treasury Short





"We Were Short… Now We Are Not!: The trend since mid-June is upward and today’s collapse in the Chinese stock market will serve only to make the bid for the US bond market that much stronger!" - Dennis Gartman

 
Tyler Durden's picture

The Fed's Bathtub Economics Brigade Blathers On, Part 1





Our monetary politburo is driving the US economy in the wrong direction. That is, toward dis-employment of its true, wealth-creating economic resources - human labor, entrepreneurial talent and market driven gains in economic factor efficiency. Contrary to this week’s self-congratulatory statement, all is not well and its not getting weller.

 
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