16 Feb 2016
US: All eyes on FOMC minutes and CPI inflation - TDS
Research Team at TDS suggests that the FOMC minutes and the January CPI inflation data will be amongst the most watched economic releases from the US in this week.
Key Quotes
“FOMC Minutes: The overall tone of January's minutes should be broadly balanced, highlighting the Fed constructive outlook for growth and inflation and the continued tightening bias. At the same time, the increased uncertainty about the outlook for growth and inflation will reinforce the current narrative that the Fed has effectively moved to the sideline for now as they assess the incoming data for clues.
January CPI: Weaker gasoline and food prices should push headline CPI down a further 0.1%, marking the second consecutive monthly decline. However, favourable base effects should push annual inflation higher to 1.2% from 0.7% last month. Core inflation should remain weak and eke out a 0.1% m/m gain while the pace of inflation should slip modestly, falling to 2.0% on account of the strong dollar.”
Key Quotes
“FOMC Minutes: The overall tone of January's minutes should be broadly balanced, highlighting the Fed constructive outlook for growth and inflation and the continued tightening bias. At the same time, the increased uncertainty about the outlook for growth and inflation will reinforce the current narrative that the Fed has effectively moved to the sideline for now as they assess the incoming data for clues.
January CPI: Weaker gasoline and food prices should push headline CPI down a further 0.1%, marking the second consecutive monthly decline. However, favourable base effects should push annual inflation higher to 1.2% from 0.7% last month. Core inflation should remain weak and eke out a 0.1% m/m gain while the pace of inflation should slip modestly, falling to 2.0% on account of the strong dollar.”