CPI-Driven Fed Dovish Pivot Rally
A lower CPI could lead to a shift in the Fed's hawkish stance, resulting in a stock market rally.
Too little corroboration in the last 3 days to call a trend (6 articles). Watching for it to gain traction.
"U.S. stocks are ticking higher Thursday after the latest update on the job market suggested the U.S. Federal Reserve may feel less pressure to hike interest rates. The weaker-than-expected result could keep pressure off inflation, which has been accelerating worldwide because of jumps in oil prices caused by the war with Iran."
"The bright side of the weaker-than-expected result is that it could keep pressure off inflation... if inflation slows in upcoming months, the Federal Reserve may feel less need to raise interest rates several times this year. That would be a relief for investors, who tend to love lower interest rates because they can give the economy a boost."
"The weaker-than-expected result could keep pressure off inflation, which has been accelerating worldwide because of jumps in oil prices caused by the war with Iran. And if inflation slows in upcoming months, now that oil prices are back below where they were before the war, the Federal Reserve may feel less need to raise interest rates several times this year."
"U.S. stocks are rising Thursday after the latest update on the job market suggested the Federal Reserve may feel less pressure to hike interest rates. The weaker-than-expected result could keep pressure off inflation, which has been accelerating worldwide because of jumps in oil prices caused by the war with Iran. And if inflation slows in upcoming months, now that oil prices are back below where they were before the war, the Federal Reserve may feel less need to raise interest rates several times this year."
"U.S. stocks are ticking higher Thursday after the latest update on the job market suggested the U.S. Federal Reserve may feel less pressure to hike interest rates. The weaker-than-expected result could keep pressure off inflation...the Federal Reserve may feel less need to raise interest rates several times this year."
"The markets are discounting a 1% chance for a +25 bp FOMC rate hike at the April 28-29 policy meeting."
"Stocks rallied on Wednesday after the Fed cut interest rates by 25 bp and Fed Chair Powell took a less hawkish tone than anticipated."
"Stocks also rose on Friday on benign inflation news after the Sep core PCE price index rose as expected."
"Meanwhile, Bloomberg reported that White House National Economic Council Director Kevin Hassett has emerged as the leading candidate to become the next Fed chair, a choice investors view as aligned with President Trump’s push for lower rates."
"The markets are discounting a 66% chance of another -25 bp rate cut at the next FOMC meeting on December 9-10."