HAWKISH HEADWINDS
10/14/2026 |
Today’s CPI reading was lousy. M-o-M headline inflation jumped 0.6%, up from 0.4% last month; Y-o-Y headline inflation rose to 3.7%, up from 3.4% last month. Both M-o-M and Y-o-Y core inflation readings were up, and unlike headline, by more than expected! Worse, service inflation was strong. If bad news like this continues next month, hopefully not, talk of a Fed rate hike will morph into a series of hikes.