The drop back in CPI inflation to 2.3% in February, from 2.5%, is a sign of things to come, with the plunge in crude oil prices likely to drag headline CPI inflation below 1.0% soon. With underlying price pressures remaining contained, there is nothing in the incoming inflation data to stop the Fed from lowering interest rates to near-zero in the coming months and keeping them there for an extended period.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.