CPI came in slightly lower than expected, but it’s still going in the wrong direction.

And, most economists expect CPI to continue rising. Is it logical to expect a FOMC rate cut next week?

continued for members…

The algos certainly think so, with futures pushing to new all-time highs (though we shouldn’t ignore the rising wedge.)

There are a lot of issues with this CPI print, including resource constraints due to budget and staffing cuts that have led to the suspension of data collection for portions of the CPI basket. Then there’s the likelihood that the Trump administration is setting the numbers to begin with.

But, whether legit or not, the market is creeping higher and vol is threatening to break down again.

Currencies continue to go sideways.