Search Results for: CPI

U.S. Core CPI Inflation In September, U.S. core CPI inflation showed a modest increase of 0.312% month-over-month, indicating that inflation pressures are not significantly escalating. Image: Nomura

S&P 500 vs. U.S. Economic Surprise – CPI Surprise The improving economic surprise index and favorable macroeconomic conditions suggest that U.S. equities may better withstand inflation compared to previous cycles. Image: BofA Global Research

U.S. Headline and Core CPI Inflation While the overall U.S. inflation trend is downward, the stronger-than-expected core CPI reading for August could lead the Fed to opt for a more cautious 25 bp rate cut this week, rather than a larger 50 bp reduction. Image: Deutsche Bank

U.S. Federal Funds Effective Rate Less CPI To combat inflation, the Fed has raised interest rates aggressively to their highest level in years, resulting in the real federal funds rate reaching a post-GFC high. Image: Deutsche Bank Research

S&P 500 1-Day Move to CPI The U.S. equity market’s response to CPI data is becoming less pronounced, influenced by shifting investor sentiment about interest rates and overall economic conditions. Image: BofA Global Research

U.S. CPI Inflation vs. U.S. 10-Year Bond Yield CPI dynamics in early 2024 show a clear pattern: Q1’s higher inflation prompted increased Fed scrutiny, while Q2’s declines suggest potential interest rate cuts, impacting market expectations and U.S. Treasury yields on CPI days. Image: BofA Global Research

S&P 500 Earnings vs. CPI and PPI While inflation can influence S&P 500 earnings, it is commonly seen as a lagging indicator rather than a leading one. Image: BofA US Equity & Quant Strategy

Inflation – U.S. Core PCE and Core CPI Goldman Sachs’ forecast of a continuous decline in U.S. core PCE and core CPI suggests a potential slowdown in inflationary pressures, which could have significant implications for the overall economic outlook. Image: Goldman Sachs Global Investment Research

U.S. Inflation – Core PCE and Core CPI Inflation is trending downward towards the Fed’s 2% target, a crucial aspect of its monetary policy aimed at maintaining price stability and anchoring inflation expectations at a moderate level. Image: BofA Global Research

Inflation – U.S. CPI Forecasts With inflation high, the Fed’s interest rate cut decisions require a delicate balance between price stability, economic expansion and employment support. Image: BofA Global Investment Strategy