Succinct Summation of the Week's Events

Succinct Summation of the Week’s Events:

Positives,

1)While I do believe reasons are adding up for a move lower in interest rates, I also understand Powell’s reticence to commit yet as sustainability of lower inflation is what he needs next.

2)The May CPI was flat headline and higher by .2% core, both one tenth below expectations. This brings the y/o/y change to 3.3% and 3.4% respectively from 3.4% and 3.6% in April.

3)Wholesale prices in May surprised to the downside with a .2% drop vs the estimate of up .1%. The core rate saw no change m/o/m vs the estimate of up .3%. The y/o/y increases slowed a touch to 2.2% and 2.3% respectively vs 2.3% and 2.5% in April.

4)After jumping in April, import prices fell in May, leaving the y/o/y change not much changed. The headline fall was .4% vs the April rise of .9%. The estimate was for a one tenth drop. Ex petro saw a 3 tenths fall after rising by 6 tenths last month. The estimate was for another .2% rise. Versus last year, headline import prices are up 1.1% and was up just .1% ex food and fuel.

5)In the Fed’s NY Consumer Expectations survey: "Perceptions about households' current financial situations improved, with more respondents reporting being better off than a year ago and fewer respondents reporting being worse off. Year ahead expectations also improved."