Eurodollar University CPI Shocks The Market, Everything You Need To Know
Jan 16, 2025
The December CPI report spurred intense market reactions, despite initially unremarkable inflation figures. It reveals a shift in concerns, particularly in motor fuel and shelter pricing. The dialogue dives into how rising interest rates are reshaping treasury bonds, alongside trader sentiments reflecting historical trends. Additionally, the Federal Reserve's evolving policies are dissected, offering fresh insights into their impact on economic stability.
AI Snips
Chapters
Transcript
Episode notes
Market Reaction to CPI
- The bond market reacted strongly to the December CPI, exceeding the reaction to June's disinflationary numbers.
- This suggests factors beyond the CPI itself influenced the market rally.
PPI and Services
- The PPI report indicated steady producer prices despite a year-over-year increase.
- Core PPI decelerated, suggesting easing service price pressures.
CPI and Disinflation
- CPI data confirms a non-linear disinflationary trend.
- Prices fluctuate, but the overall direction is downwards, even if not as fast as consumers might hope.