The Fed's Efficacy in Addressing Inflation

Despite the OPEC headlines we got last week and what is appearing to be a higher oil price regime above $80 a barrel in WTI space five year break evens have been relatively well contained. There does appear to be some collective faith that policy rates quickly closing in on 5% are going to have the desired effect on demand which will continue to bring inflation lower. In terms of the sub component of inflation most directly linked with wages good news for Powell as he continues to try to bring consumer prices lower. The core services X shelter component decelerate to two tenths of a percent month over month and that's a positive indication of the efficacy of monetary policy.