The sharp increase, which comes as higher tariffs are about to take hold, heightens the risk that the Federal Reserve is losing control of what until recently were well-anchored expectations and, consequently, price stability. … READ MORE >
Inflation
Market Minute: CPI will start to reflect tariffs, especially in used autos
The April consumer price index will provide insight in the early days of the current trade conflict when it is released Wednesday as signs of rising prices for apparel, autos, shoes and toys will begin to appear. … READ MORE >
Canada’s weakened financial conditions point to slower growth
Canada’s financial conditions have deteriorated as the prospect of slower economic growth looms in the coming quarters amid tariff-induced uncertainty. … READ MORE >
Market Minute: Rising inflation expectations could send yields higher today
The New York Fed’s Survey of Consumer Expectations, to be released on Monday, carries the risk of sending yields higher across the curve. … READ MORE >
U.S. households pull forward spending as PCE inflation remains sticky
Households are preparing for what they believe will be another price shock caused by an increase in the costs of goods through a policy-induced trade shock. … READ MORE >
Consumer sentiment falls to the lowest level since early 2023
Most notably, inflation expectations worsened, with the 12-month gauge advancing to 4.9% and the five-to-10 metric increasing to 3.9%. … READ MORE >
Market minute: The policy determinants of the rising euro
The euro is poised to appreciate against the dollar as the continent loosens fiscal restraints to rebuild its defenses. … READ MORE >
Market minute: Soft economic landing at risk
Businesses, and the economy overall, face uncertainty amid the regime change in the global economy. … READ MORE >
Producer inflation topped forecasts in January, led by food and energy prices
The producer price index rose by 0.4% in January, following an upwardly revised 0.5% increase in December, making it the hottest two-month stretch of inflation since February last year. … READ MORE >
Inflation accelerates in January amid concerns about rising expectations
The CPI data for January will feed into expectations that the Fed is done cutting rates just as policy uncertainty on trade and immigration is likely to feed into rising inflation expectations.
… READ MORE >