Michael R. Strain(@MichaelRStrain):0.2% monthly core CPI was right on the bubble. A lower print would have taken some pressure off the Fed. A higher print would have added to the pressure. But this did neither. Still, the Fed needs to hike rates. 0.2% monthly July core CPI is consistent with 3.3 percent annual July core PCE. Core PCE has been increasing for over a year. The unemployment rate has been low and stable for two years. Financial conditions are arguably easier than they were one year ago, and have been stable or falling over the summer. Great to be on @SquawkCNBC. Link in the next post.

2026.08.12 14:10

0.2% monthly core CPI was right on the bubble. A lower print would have taken some pressure off the Fed. A higher print would have added to the pressure. But this did neither. Still, the Fed needs to hike rates. 0.2% monthly July core CPI is consistent with 3.3 percent annual July core PCE. Core PCE has been increasing for over a year. The unemployment rate has been low and stable for two years. Financial conditions are arguably easier than they were one year ago, and have been stable or falling over the summer. Great to be on @SquawkCNBC. Link in the next post.