Fed's Daly: CPI report wasn't that surprising, it's a lagging indicator<ul><li>CPI report on Thursday was a reminder that we have work to do on inflation</li><li>CPI shows inflation is not cooperating</li><li>Labor market is cooling</li><li>Today's retail sales report another sign of some cooling</li><li>We will have to be data dependent on rate hikes</li><li>We are working in a global economy, lots of uncertainty and risks</li><li>No doubt that we need more restrictive policy</li><li>We are rightening into a strong economy</li><li>I still think SEP projections are really reasonable</li><li>Too much uncertainty for it to be prudent to write down exact rate hike path</li></ul><p>Daly is a mouthpiece for Powell and the comment about CPI being a lagging indicator is somewhat of a sign that 100 bps isn''t coming on Nov 2. It's currently priced at 13%.</p>
This article was written by Adam Button at forexlive.com.
Source: Fed's Daly: CPI report wasn't that surprising, it's a lagging indicator (https://forexlive.com/centralbank/feds-daly-cpi-report-wasnt-that-surprising-its-a-lagging-indicator-20221014/https://forexlive.com/centralbank/feds-daly-cpi-report-wasnt-that-surprising-its-a-lagging-indicator-20221014/)
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