- Analytics
- News and Tools
- Market News
- Slightly hawkish Fed must remain in place for the monetary medicine to fully take effect – BMO
Slightly hawkish Fed must remain in place for the monetary medicine to fully take effect – BMO
US CPI inflation, as expected, came in “hot” once again in February. Economists at the Bank of Montreal analyze Fed’s policy outlook after the inflation report.
Ugly inflation read will do nothing to soothe nerves on the FOMC
Headline inflation increased 0.4% in the month, in line with our forecast and the consensus, but remains an unwelcome acceleration from an unrevised and already elevated 0.3% January reading. The yearly rate of inflation edged up to 3.2%.
Core CPI inflation, excluding food and energy, increased slightly more than forecast, up 0.4% last month and 3.8% from a year ago versus 3.9% in January, a more modest slowdown than the consensus had expected. Even more concerning is the fact that the three-month and six-month moving averages of core inflation accelerated and are moving in the wrong direction for a Fed that is trying to bring inflation to heel.
This initial inflation report for February is an ugly read that will do nothing to soothe nerves on the FOMC. Inflation remains the number one problem they still have yet to solve. Clearly, restrictive monetary policy has not yet fully done its work and a patient and slightly hawkish Fed must remain in place for the monetary medicine to fully take effect.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
