There Will Be Consequences

Enjoy these mild-mannered market days while you can. They won't last.

I’m certain that every headline today is going to be about CPI numbers, as if they’re actually going to have some type of meaningful impact on Fed policy from this point forward. Barring a multiple-sigma outlier in the numbers, and while the market may temporarily react, I really don’t see Fed policy changing meaningfully due to today’s data.