Why Can’t the Fed Generate Inflation?
What’s in Today’s Report:
- Why Can’t the Fed Generate Inflation
U.S. stock futures have a mild bid this morning while international shares were split between gains and losses overnight amid mixed economic data.
Global manufacturing PMI data largely met expectations overnight and did not materially move markets.
The August Eurozone HICP Flash (our equivalent of CPI) missed with a headline of -0.2% vs. (E) +0.2% but a resulting rise in stimulus hopes is helping EU equities outperform today.
Looking into today’s session, there are two economic reports: ISM Manufacturing Index (E: 54.5) and Construction Spending (E: 1.1%) however the former will be the more important release to watch regarding the health of the economic rebound.
Additionally, there is one Fed speaker today: Brainard (1:00 p.m. ET), and markets will simply be looking for further confirmation that the FOMC plans to be very accommodative for quarters to come.