November U.S. Core CPI Fails To Follow Through

Economist (US Macro), RDQ Economics

Conrad DeQuadros

Economist (US Macro)

RDQ Economics

RDQ Economics provides global macroeconomic consulting services with an emphasis on U.S. economic fundamentals and monetary policy.  
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Our views are driven by consistent application of classical economic and monetary principles and has generated superior anticipation of changes in the stance of monetary policy and of movements in economic growth and inflation.
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The founders of RDQ Economics—John Ryding and Conrad DeQuadros—worked together on Wall Street for a decade, in the independent research space for nine years, and have experience in central banking at the Federal Reserve and the Bank of England.  John and Conrad have worked closely with fixed income, foreign exchange, and equity traders and portfolio managers, which has enabled their analysis and advice to be tailored to a clientele that is focused on trading and investment decisions.

Credit

<p>This week brought reports on the U.S. producer and consumer price indexes for October.  Following a methodological change in 2014, the Bureau of Labor Statistics now reports headline PPI as "final-demand" prices rather than "finished goods" prices—finished goods PPI prices are still published, but have been demoted.  We find little use for final-demand PPI prices as these include PPI services prices, which have a large relative importance (64%) but no relationship to CPI services prices, which…</p>

This week brought reports on the U.S. producer and consumer price indexes for October.  Following a methodological change in 2014, the Bureau of Labor Statistics now reports headline PPI as "final-demand" prices rather than "finished goods" prices—finished goods PPI prices are still published, but have been demoted.  We find little use for final-demand PPI prices as these include PPI services prices, which have a large relative importance (64%) but no relationship to CPI services prices, which…

US Breakeven 10 Year

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