Why the Bar for the Fed to Be Hawkish Is High
Why the Bar for the Fed to Be Hawkish Is High: Start a free trial of The Sevens Report.
What’s in Today’s Report:
- Why the Bar for the Fed to Be Hawkish Is High
- What the CPI Report Means for Markets
Futures are slightly higher despite soft economic data, as markets await the Fed decision later this afternoon.
Economically, data from the UK and the EU was bad and is slightly increasing growth concerns. UK monthly GDP and UK & EU Industrial Production all missed estimates.
Chinese growth concerns also rose as China declared industrial development as the #1 economic priority, potentially signaling less economic stimulus in 2024.
Today focus will be on the FOMC decision (2:00 p.m. ET, No change to rates expected) and the keys are the 2024 dot (does it show 50 bps of cuts?) and whether Powell slams the door on the idea of rate cuts (or leaves it slightly open). In addition to the Fed, we also get another important inflation reading via PPI (E: 0.1% 1.0%). A further decline will be peripherally positive for markets.
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