- Inflation is decelerating and it takes pressure off the Fed.
- Trump is frustrated with Canada but is expected to talk to Canada again "by the end of the term"
Not sure what the "end of the term" means.
US CPI rose to 3.03% from 2.94% (unronded) last month, but was less than 3.1% estimate. The core measure moved from 3.11% last month to 3.03% this month.
Core services inflation rose 0.24% vs 0.35% last month. The YoY core services data did decelerate YoY to 3.48% vs 3.61% last month. Goods inflation moved up to 1.54% from 1.49% YoY last month.
The Fed is expected to address the risk to jobs (which we have not gotten any data on) when they meet next week. The expectation is for the Fed to cut rates by 25 basis points on Wednesday, and another 25 basis points in December.
