Hi @GangsterCPI and Core CPI exactly met polled economist’s...

Hi @Gangster

CPI and Core CPI exactly met polled economist’s forecast and traders wil almost certainly see that as good news and a near certainty for a June pause/skip.

On face value CPI has dropped from 4.9% to 4.0% year on year.

But the Fed’s preferred gauge Core CPI only dropped from 5.5% to 4.3% year on year, with the actual May Core CPI being +0.4%, the 6th month in a row the monthly rise has been over 0.4%, which is double the Fed target of 0.2% per month (2.4% annually) and some are saying this alone is basis enough for the Fed to justify a 0.25% rise tomorrow … which the market would take hard.

PCE figures out tomorrow morning NYT with be closely watched by the Fed ahead of the rates decision at 2pm.

Probably the negative aspect of core CPI just released will be completely missed by the market this session … with a close I now think may take @Margaret63 to the lead.

Cheers
Dex