A real shock was experienced in CPI in producer prices. PPI fell by 0.5% in March, and the annual growth rate fell from 4.9% to 2.7%, the lowest since Jan 2021, but more importantly, it is close to the last 20 years’ average.
The market is celebrating the gap between expectations and reality by investing in riskier assets and ignoring the US dollar. The Federal Reserve is expected to leave rates unchanged in May with a 40% chance of that happening.
The focus of...