

CPI Drops, Powell Stays Hawkish & EU Warns of Trade War - PALvatar Market Recap, February 12 2025
Feb 12, 2025
The podcast dives into the latest U.S. CPI figures, highlighting a steady 2.9% inflation rate and a slight dip in core CPI. Discussions revolve around Powell's hawkish stance on interest rates, emphasizing that no cuts are imminent. The EU is on high alert for potential trade wars following the announcement of tariffs. Mixed market reactions are noted, with European indices climbing while the yen weakens. Gold also retreats as U.S. Treasury yields rise, showcasing a day full of financial intrigue and volatility.
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CPI and Fed Policy
- The US CPI data is expected to show a steady 2.9% inflation and a core CPI decrease from 3.2% to 3.1%.
- A lower CPI could alter the Fed's decision to hold on interest rate cuts.
Trade War Concerns
- EU President Ursula von der Leyen warned of retaliation against Trump's steel and aluminum tariffs.
- This raises trade war concerns, impacting both US and EU economies.
Mixed Market Reactions
- Market reactions to trade uncertainties are mixed, with DAX and CAC rising while the Yen weakens.
- Rising US Treasury yields pulled gold back from recent highs.