Know The Difference Minute

The Fed has a dual mandate. Maximum employment and price stability. It is 1 for 2 there. But the labor market continues to be incredibly tight and isn’t helping by producing broader inflationary pressure. 

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Welcome to the Know the Difference Minute for Tuesday, February 14th.
The Consumer Price Index can be a puzzle. Case in point: today’s 6.4% reading coming in hotter than expected. Same with ‘core CPI’ which doesn’t include food and energy.
The Fed has a dual mandate. Maximum employment and price stability. It is 1 for 2 there. But the labor market continues to be incredibly tight and isn’t helping by producing broader inflationary pressure.
The cure might be coming, but it might sting. While headline jobs data are mostly still strong, markets and leading indicators continue to suggest a slowdown is coming. That leads to softer spending which –in theory—helps bring down inflation. It’s a balancing act trying to engineer a soft landing.
No matter what, the biggest risk remains the Fed overtightening.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.