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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US OUTLOOK/OPINION
NY Fed's April survey of consumers showed an 8-yr high in median one year-ahead inflation expectations which hit 3.36% in April vs 3.24% in March .
- Though medium-term expectations were unchanged, worth noting that 5-Yr TIPS implied-breakevens hit 2.7334%, highest since 2006 (per BBG data).
- The timing of these developments chimed well with MNI's Exclusive interview with NY Fed adviser John Cochrane published this afternoon - he told MNI that the FOMC's current course of policy risked seeing inflation expectations become unanchored.
- This sets an interesting backdrop to Wednesday's CPI and Thursday's PPI releases, especially given FOMC members' insistence that while forecasts and expectations are key, they are looking for actual outcomes in their dual mandate before shifting monetary policy.
- While likely-elevated Y/Y figures in coming months are seen transitory for a variety of reasons, the M/M figures will be closely dissected for signs that inflation is indeed picking up.
Source: NY Fed
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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