Another 0.3% makes more of a trend
Fed's Waller indicated this brings a 50bp hike into the discussion for Dec
Clear mmkt and dollar sensitivity as a result
Quite a notable number, with the latest core CPI print coming in at 0.3%, to make something of a trend now rather than a blip, and less excusable to seasonals than recent months too.
In unrounded terms, the figure is also fully 0.3% too, so not just a fractional rounding miss.
The sensitivity to the number had also been heightened in the run up by Fed Waller’s suggestions that such an outturn would bring a 50bp move onto the discussion table for Dec.
Quite a big reaction by the dollar accordingly. Money markets will have to re-jig their 0-25-50 outcome probabilities as a result and that will spill over into the curve.