EarnMoneyAndEatMeat
CPI and the Fed's Game, One Data Point Cannot Change the Long-Term Path
Markets often overestimate the influence of a single CPI data point. In fact, at the current stage, the Fed's decisions no longer rely on one piece of data but on a comprehensive set of trends: inflation trajectory, employment resilience, financial conditions, and asset bubbles.
Even if this CPI report is moderate, it does not mean an immediate shift to easing; similarly, even if CPI slightly rebounds, it does not imply an urgent hawkish policy turn. What truly changes the policy direction are often "evidence of continuity
View OriginalMarkets often overestimate the influence of a single CPI data point. In fact, at the current stage, the Fed's decisions no longer rely on one piece of data but on a comprehensive set of trends: inflation trajectory, employment resilience, financial conditions, and asset bubbles.
Even if this CPI report is moderate, it does not mean an immediate shift to easing; similarly, even if CPI slightly rebounds, it does not imply an urgent hawkish policy turn. What truly changes the policy direction are often "evidence of continuity










