The CPI figures reaffirm that underlying price pressures remain stubborn, suggesting that the journey back to the 2% inflation target will be turbulent.
The FOMC is likely to 'skip' the January meeting amid a resilient labor market, with a cautious approach to rate cuts anticipated in 2025.
The comfort blanket of a 'fed put' for risk assets is fading, with increased hawkish risks re-introducing uncertainty in policy outlook this year.
Solid economic data could lead to continued equity upside, but the path is expected to be bumpier and more volatile, reflecting market uncertainty.
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