What to Watch for in U.S. CPI Report

The video discusses recent trends in inflation, highlighting better-than-expected numbers and their implications for Federal Reserve policies. It examines the role of core services and housing in inflationary pressures and the divergence between market expectations and the Fed's potential actions. The discussion includes insights from Bloomberg surveys and the impact of these trends on future interest rate decisions.

What recent economic indicators suggest that inflation might be rolling over?

• Rising ISM numbers for manufacturing

• Declining ISM numbers for services

• Significant drop in part prices paid

• Increase in core inflation

What is the significance of the first negative print on the headline since May 2020?

• It marks a decrease in inflation

• It suggests a potential economic downturn

• It shows stability in the economy

• It indicates a rise in inflation

Why is the core services excluding housing metric important to the Federal Reserve?

• It is a traditional measure used by the Fed

• It reflects inflationary pressures excluding volatile housing costs

• It shows the overall economic growth

• It includes housing prices which are stable

What is the general market consensus regarding the Federal Reserve's next move?

• They will cut rates immediately

• They will raise rates by 50 basis points

• They will raise rates by 25 basis points

• They will keep rates unchanged

What is the main uncertainty regarding the Federal Reserve's actions in the coming months?

• Whether they will stop raising rates after March

• If they will increase rates by 100 basis points

• If they will focus on housing prices

• Whether they will start cutting rates in 2023