The latest CPI numbers for April came in a bit cool, but the markets are still moving higher. Joining us now is former Dallas president Richard Fiser, a senior adviser and CNBC contributor. Fiser shared his thoughts on the numbers and what Federal Reserve Chair Jay Powell might make of them.
Fiser cautioned against instant analysis, noting that Central Bank policy is complex and not easily understood. He pointed out that the Fed is unlikely to change its target based on one data point, as inflationary pressures are still too high relative to their goal of 2%.
Despite the market’s knee-jerk reaction to the news, Fiser emphasized the importance of considering the government’s borrowing schedule and its impact on interest rates. He noted that the 10-year US Treasury rate is currently at a favorable level, which could benefit insurance companies and other investors.
Looking ahead, Fiser suggested that any potential rate cuts may be pushed out to September or even March of next year. He highlighted Powell’s recent comments indicating a steady policy for the next few meetings.
Overall, Fiser’s insights shed light on the complexities of market reactions to economic data and the importance of taking a more thorough approach to analysis. As investors navigate uncertain times, it will be crucial to consider a variety of factors in making informed decisions.
