CPI print and the Fed's stance for Q3
That latest CPI number came in a bit hotter than expected, which isn't exactly helping the 'soft landing' narrative gaining traction. Given the Fed's recent hawkish lean, this likely means rates stay elevated for longer, or at least the market prices in that scenario more definitively. I'm keeping a close eye on interest-rate sensitive sectors and how the dollar reacts, especially with that $PLTR dip today. The $SSE movement also suggests some continued caution in growth-oriented assets.
Definitely agree on the longer-term rates staying elevated. It feels like the market's been trying to talk itself into a quick pivot, but the data just isn't supporting that. Curious how you're thinking about potential bond market reactions to this.