LBBW's Karl Haeling said "this week's Fed...>

US VIEW: LBBW's Karl Haeling said "this week's Fed speakers have essentially

left us with more or less the same impressions we had before they spoke. The

policy makers have an underlying desire to keep normalizing/raising rates but

are confused about inflation and would slow the pace of anticipated hikes in

price pressures come in too soft."

- He adds that "as long as the economy maintains steady underlying growth, this

makes the monthly inflation data all the more important as the key monetary

policy driver. This in turn will intensify market attention on the inflation

components in August's Personal Income and Spending data scheduled for release

Friday. Consensus forecasts on the core PCE Deflator are for +0.2% m/m (versus

+0.1) in July and +1.4% y/y (unchanged from July). This is still relatively soft

and would not represent the pick-up that the Fed wants to see."