Looks like people are going to go ahead and read the CPI print as further evidence that “Goldilocks” is alive and well.
Coming as it does on the heels of February payrolls which delivered a blowout on the headline jobs print along with a miss on the average hourly earnings front, today’s inline CPI number is probably going to be seen as further evidence that the Fed need not be in a rush to hike.
And look, even as that’s a less than nuanced take, no news is probably good news when it comes to further evidence of price pressures in the U.S. considering a backdrop of expansionary fiscal policy at full employment and the possibility that tariffs could add to inflation pressure.
The reaction in markets echoes that assessment as the dollar falls (losses accelerated there after Rex Tillerson was ousted as Secretary of State):
And futures spike: