Live Analysis – US Inflation with Andria & Francois

Fed funds futures are surging as the CPI report takes the FOMC out of the picture for now. Deferred contracts are pacing the move, though we suspect the market is getting ahead of itself, moving forward rate cuts and pricing in a string of easings next year. The implied May contract suggests about an 80% chance

US Economy & US Dollar: Tied in Knots

It was a difficult September for bond and stock bulls. After reiterating ad nauseum, it appears that the FOMC’s “higher for longer” message has finally gotten through. In general central banks are mostly in wait and see mode as they assess the many crosscurrents to determine whether additional tightening is needed. Uncertainties over the policy

BOE In Wait & See Mode

The BoE unexpectedly left the Bank Rate unchanged at last week’s meeting. The decision followed a surprise drop in headline inflation, which coupled with weaker than expected growth suggested that policy settings are now sufficiently restrictive to bring inflation down lastingly. Markets have trimmed expectations for peak rates in the UK substantially, and we see

Treasuries & Stocks Rally on Jobs Data, USD Tumbled

Treasury yields and the Dollar tumbled while equity futures rallied on the August jobs report that showed more cooling than expected. This report was close to Goldilocks with slowing in employment with a 2023 average monthly gain of 236k versus 399k for 2022. The unemployment rate jumped, due to a big surge in the labor