Morgan Stanley hasn't modified its Federal Reserve forecast regardless of robust US CPI report

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The info will be discovered right here:

  • Ubaidahsan Americas FX information wrap 12 Feb: Larger US CPI pushes yields larger. USD is blended

Should you needed a heads up on the higher-than-expected quantity BEFORE it got here out, learn ForexLive! Adam nailed it:

  • Warning: There’s a January-effect in Wednesday’s CPI report

In response to the info Morgan Stanley have maintained their name for only one Federal Open Market Committee (FOMC) fee reduce this 12 months, in June.

Morgan Stanley analysts counsel that the most recent Shopper Value Index (CPI) information alerts a agency studying for core Private Consumption Expenditures (PCE) inflation, although possible softer than the January 24 print.

  • In consequence, they anticipate a gradual decline in year-over-year core PCE inflation all through Q1 2025.
  • Regardless of this moderation, the agency maintains its view that the Federal Reserve will prolong its coverage pause, anticipating only one fee reduce in 2025, which they forecast will happen in June.

Does that appear like an uptrend in inflation?

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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