MUFG's chief economist Chris Rupkey...>

US DATA REACT: MUFG's chief economist Chris Rupkey on this morning's data with

inflation at 1.5% and consumer spending falling in January warns "Inflation

isn't going to run any hotter if economic demand does not pick back up this

quarter, that's for sure." Note however, Tsys have trimmed gains this morning as

equities climb ahead Fed Powell's second mon/pol testimony at 1000ET.

Nevertheless, Rupkey adds "today's data do not back up incoming Fed Chair

Powell's claims that the economy has strengthened since the December meeting. We

doubt he will find many takers around the table in March for raising the rates

path to four hikes this year instead of just three rate hikes. Hot or not, this

economy would have to be described as not."