In this morning’s announcement, the Consumer Price Index rose 0.2% in February, as expected, and has increased 1.5% on an annual basis. The core rate, excluding food and energy rose just 0.1% in February, a bit lower than expected, and has increased 2.1% on an annual basis. Inflation data remains muted, with the core rate still near the annual 2% target stated by the Federal Reserve. Wage growth has not yet fed through to higher prices, despite recent strength in Average Hourly Earnings, up over 3% in February per last week’s data. Until it does, the Federal Reserve can afford to remain patient with interest rate policy. In all, equity futures are mixed and bond yields have ticked lower heading into the market open.
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