HALISTER1: U.S. CPI Stable, Pointing to End of Deceleration: Jefferies

U.S. CPI Stable, Pointing to End of Deceleration: Jefferies

(Bloomberg) -- The July consumer inflation data showed stability in y/y levels and probably sets the stage for a a gradual move upward to better readings, Ward McCarthy, chief economist at Jefferies, said in a phone interview.
  • “This data continue the trend of sluggish numbers, but is likely the beginning of the end of deceleration”
  • The Fed would like to see m/m increases of about 0.2%, which there is “a good chance will be in the cards as long as gas prices continue to churn higher as they have”
  • Jefferies unchanged in predicting that Fed announces in September an October start to slowing balance sheet reinvestments and likely lifts rates in December
To contact the reporter on this story: Liz Capo McCormick in New York at emccormick7@bloomberg.net To contact the editors responsible for this story: Boris Korby at bkorby1@bloomberg.net Greg Chang

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Ward McCarthy (Jefferies LLC)

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