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SocGen economist Omair Sharif quipped on....>

US VIEW
US VIEW: SocGen economist Omair Sharif quipped on FOMC meeting minutes, "there's
something happening here" and "that for Fed officials, the drivers of weak
inflation are not exactly clear. That led to a lively debate at the September
meeting about the reasons behind the inflation soft patch and the extent to
which it is due to transitory versus secular forces."
- He adds that "cutting through the noise, we see no reason to alter our call
for a 25 bps hike in December. Inflation is clearly at the forefront of the
Committee's mind, and they seem more open to the idea that secular forces may be
more at work in holding down price gains than they thought earlier this summer.
Chair Yellen's recent speech is evidence of this. Still, as we have said since
Yellen's June press conference, the Fed simply needs to see "sequential" gains
in inflation to hike in December. On that front, the August CPI report helped,
and we expect that this Friday's CPI will also boost the Committee's conviction
that the inflation soft patch is behind us."

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