November 11, 2022 18:48 GMT
RBC: Time For The Doves To Spread Their Wings
- On balance, RBC loved the CPI report. They have said for "many, many months" that core CPI will be moving in the right direction by year end, and that a 3-handle by mid-23 or a 2-handle by end-23 was not at all heroic - they still very much like these calls.
- They think the Fed are "completely overdoing it here" although for now struggle to see a scenario where it doesn't hike 50bps in Dec, although "would like nothing more than for them to stop".
- "What we could see happen on the back of this soft CPI is it allows different camps within the Fed to really start to re-emerge. Every Fed official has been a hawk of late. It’s time for the doves to spread their wings."