Powell looking well past the next inflation report

Being cautious: Powell makes it clear that he’s looking at more than just one inflation report – and investors should too. — AFP

IF you believe market bulls, the next US inflation report on Tuesday could be the one that gives the Federal Reserve (Fed) the opportunity to turn less hawkish.

Their thesis is that a second-straight slowdown in the monthly pace of inflation – especially in the core measure that excludes volatile food and energy – might allow the central bank to raise interest rates in smaller increments going forward.