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Bloomberg Businessweek

Tame CPI Data Could Guide Fed's Next Move

Aug 10, 2023
46:09
Snipd AI
Discussion on US CPI data and Federal Reserve policy. Coach owner buys Michael Kors parent in $8.5 billion deal. Increase in Lyme disease in the US. Lower domestic airline prices. Current state of the market and expected higher interest rates.
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Podcast summary created with Snipd AI

Quick takeaways

  • The domestic airline market has experienced lower prices due to increased capacity and lower jet fuel prices, while international fares remain high.
  • The bond market is sending conflicting signals with an inverted yield curve suggesting a possible recession, but nominal rates have risen, making it challenging to interpret market sentiment.

Deep dives

Airline prices decrease due to increased capacity and lower jet fuel prices

The domestic airline market has seen decreased prices due to increased capacity from airlines. The availability of more seats combined with lower jet fuel prices has contributed to a decrease in fares compared to last year. International fares, however, remain high due to strong demand. Prices to destinations in Asia are up almost 60% compared to pre-pandemic levels. Europe has seen some improvement in prices, but fares are still relatively expensive compared to previous years.

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