Barclays on US CPI and implications for the FOMC

For much of this summer, the question facing the Fed has been how much of the recent disinflation is transitory and how much will persist - in other words, where will the underlying rate of inflation settle? In our view, the August report should assuage concerns in some parts of the FOMC that the underlying rate of inflation has fallen too far. In light of this morning’s report, we maintain our view that a rate hike in December is more likely than not, but also point out that it remains dependent on the incoming date on labor markets, activity, and inflation.

14 Sep 2017 - 15:31- Economic Commentary- Source: Barclays

Subscribe Now to RANsquawk

Click here for a 1 week free trial

RANsquawk provides audio news and commentary for over 15,000professional traders and brokers worldwide. Services include: