BlackRock is the world’s largest asset manager. The firm’s chief investment and portfolio strategist, Americas, Gargi Chaudhuri is taking a circumspect view of the better CPI report:
- CPI came in (@0.3% m/m and 3.4% y/y) better than expected (0.4 and 3.4 respectively)
- but higher-for-longer interest rates from the Federal Reserve are likely to be still necessary
- “This print reiterates that while inflation is moving in the right direction, a more restrictive policy stance with interest rates remaining on pause is the appropriate monetary policy for this macroeconomic environment”
More on the CPI data (and retail sales) here ICYMI:
Be aware, though that folks are getting excited!
- US stocks close at record highs as the market looks past inflation
- Fed Goolsbee says if housing inflation decrease seen in April CPI continues, that’s great!
This article was written by Eamonn Sheridan at www.forexlive.com.
