US CPI for the month of December was published yesterday and it accelerated a little bit since November, breaking the almaighty downtrend since June 2022. Prices increased by 3.4%, with two important notes: Energy was a detractor compared to Dec 2022, and shelter, measured by #oer is in a very soft downtrend, where in reality, rents have come down substantially. As a result, rate cuts exptactions haven’t moved that much, and are still discounting no cuts in January 31st and 70% chance of a 25 bps cut in March. At this point, inflation, unless there is a big surprise one way or another, has taken the back seat, and unemployment is now the most relevant indicator capable of moving the market and adjust rate cuts expectations.
Want to know more? join Fund@mental here https://apps.apple.com/us/app/fund-mental/id1495036084
#iamfundamental #soyfundamental #wealthmanagement #familyoffice #financialadvisor #financialplanning
