The Treasury’s market’s implied inflation forecast last week reached the highest level since 2014, reflecting growing concern that pricing pressure is heating up. But the reflation trade has cooled this week, providing support for some analysts who argue that inflation fears are exaggerated. A reality check is due to arrive in today’s January update on the Consumer Price Index (CPI).
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US forces killed dozens of Russian mercenaries in Syria last week: Bloomberg
US intelligence agencies: Russia may interfere in Nov election: Reuters
Cleveland Fed’s Mester could be the Fed’s next vice chair: WSJ
US small business optimism rose more than forecast in Jan: Bloomberg
Is Wall Street’s inflation fear overblown? MarketWatch
Japan’s current expansion is the longest since the 1980s: Reuters
California is booming, but is also preparing for the next recession: NY Times
Weak recovery due to low productivity growth, falling labor participation: SF Fed