Inflation, Labor Market and Foreign Conflict Impacting Rates
The highly anticipated CPI report was released on Thursday morning, showing slightly higher than expected Month-over-Month (MoM) and Year-over-Year (YoY) numbers. While the Core CPI (excluding Food and Energy) came in as expected, the MoM and YoY figures were sufficient to drive yields back up as markets attempt to digest the data's impact on future Fed policy. As the Fed analyzes the economic reports to guide its policy decisions, the many ongoing geopolitical situations do not make their job any easier. Expect the volatility to continue as the Fed endeavors to navigate this "soft landing."