Market Based Inflation Expectations Post-Fed
What’s in Today’s Report:
- Market Based Inflation Expectations Post-Fed
Futures are moderately lower on the news that President Trump will nominate Kevin Warsh as Fed Chair.
The Warsh nomination is a surprise (Waller and Rieder were the favorites) and he’s not the market’s first choice, as Warsh has been hawkish on the use of QE in the past.
Staying with politics, a deal apparently has been reached to avoid a government shutdown (which is a positive).
Today focus will be on the President’s Fed announcement and, again, while Warsh isn’t a negative for markets, it wasn’t the market’s first choice and that is why we’re seeing profit taking in gold and silver this morning (gold down 3%).
Outside of the Fed, we do get PPI (E: 0.2% m/m, 2.9% y/y) and some notable earnings from lenders/credit card companies: SOFI ($0.12) and AXP ($3.55). Good commentary about consumer spending will be welcomed by the markets.
