”It was hotter than the street was 2 expecting. Undoubtedly. But if you look at the component, there were only a few components that stood out. It wasn’t broad-based price increases. Rents didn’t go up, which is a big part of the CPI basket. And then a bunch of other categories that people care about did not. Insurance costs for vehicles went up a lot. And we think there’s still more catch up on that. But so far, this print itself should not worry the Fed that we’re getting renewed inflationary pressures. Now, setting that aside, the new administration’s policies, on the other hand, the jury’s out on how inflationary those would be. And we also heard from Powell earlier this week at Humphrey-Hawkins, he’s clearly worried about it.”
Morten W. Langer
