US CPI preview – Deutsche Bank expect stubborn core CPI to inch higher, Fed may hike again

<p>Deutsche Bank says there is tentative evidence that US core inflation is settling around 3%. And that is triggering some concern at the Fed.</p><ul><li>lower gas prices should help headline drop</li><li>but we expect core to edge up</li><li>core is remaining stubborn</li><li>
The consensus suggests that the Fed have pretty much won the battle on inflation, and markets have certainly got very excited about a potential dovish pivot … But this is far from the first time that hopes for a dovish pivot have caused excitement, and if core is sticky around 3% then there’s little doubt that the Fed will look to tighten policy again.</li><li> It was notable that Chair Powell said last week that they were aiming for a sufficiently restrictive stance of policy, but “we are not confident that we have achieved such a stance”.
</li></ul><p>Earlier:</p><ul><li><a href="https://www.forexlive.com/centralbank/us-cpi-will-be-eyed-ahead-of-the-december12-13-fomc-meeting-20231114/" target="_blank" rel="follow" data-article-link="true">US CPI will be eyed ahead of the December12-13 FOMC meeting</a></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.