Analysts Believe CPI Points to Pause ⏸️

GM and BRRR.

Aprils’s inflation data hit the tape this morning and it was mildly encouraging, as Consumer Price Inflation (CPI) landed soft at 4.9% y/y vs expectations of 5.0%.

Here’s what happened as markets digested the report:

• the odds of an interest rate hike at the next FOMC meeting fell from 20% to 10%.

• The NASDAQ climbed 0.8% higher

• Bitcoin and Ether pumped up mildly, nearly 1.6%

 
Here’s what we brrr’d today:

• Analysts Believe CPI Points to Pause

• Confidence in Freefall: Biden, Powell, and Yellen Hit Record Lows

Analysts Believe CPI Points to Pause

• Ellen Zentner, Morgan Stanley chief US economist

  “We continue to see the data and financial conditions firmly supporting a pause in June,” though overall the CPI figures “should encourage the Fed to keep the door open for a June hike.”

• David Bahnsen, CIO at The Bahnsen Group

  “The actual inflation rate is very likely at the Fed’s 2% target due to the way shelter and housing components are calculated. The housing component of CPI is largely representative of rental prices, which has a lag effect as renters typically lock-in their lease for long periods of time. Real estate prices across the board have declined considerably in recent months, and it’s going to take a few more months for the CPI to reflect this decline.”
  Bloomberg Analysts via ZeroHedge

Confidence in Freefall: Biden, Powell, and Yellen Hit Record Lows

• Powell drops: According to a recent Gallup poll, only 36% of U.S. adults express a "great deal" or "fair amount" of confidence in Federal Reserve Chair Jerome Powell, the lowest rating for any prior Fed chair.

• Yellen falters: Confidence in Treasury Secretary Janet Yellen is also down substantially from last year, when 54% were confident in her. This year, only 34% of Americans expressed confidence in Yellen's ability to do or recommend the right thing for the economy.

• Biden bumbles: Nearly half (49%) of Americans say they have almost no confidence in President Joe Biden on economic matters, while only 38% express confidence in his leadership.

• All leaders ratings below 40% in the same year: This is the first time that has occurred in Gallup’s polling of this question since 2001, over twenty years of polling data.

  Gallup

AI ART OF THE DAY

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