zerohedge.com / by Tyler Durden / Jun 14, 2017 10:13 AM
One month ago, Goldman warned that as the disconnect between the Fed’s interest rate and financial conditions, the easiest in three years, grows Yellen may have no choice but to unleash “policy shock” on the market, or in other words, be far more hawkish than priced in the by the market. After today’s latest disappointing CPI and retail sales data, she may have her chance, because as RBC warned last night, and followed up today, “this CPI was the ‘real’ event-risk for the day.”
And not just CPI, but Core CPI, which today printed at the lowest level since 2015, and would have been far worse, if not negative absent the positive contribution from shelter inflation.
Here is what today’s poor data means for the Fed whose announcement is due in just under 4 hours, according to RBC’s Charlie McElligott:
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