Today’s Topics:

1/18/17

 

  • CPI rises as core and headline inflation converge.

 

  • Inflation pressures are concentrated among inelastic areas of the economy. What does this mean for the strength of the economy?

 

  • Wage growth mildly disappoints as weekly wage gains lag hourly earnings.

 

  • Why is it so difficult to understand the yield curve? It really isn’t that

 

WS&M LLC Bond Squad End of Year 2017 Forecasts:

 

Fed Funds Rate:                              1.25% – 1.50% (year-end)

 

2-year UST Note Yield:                   2.00% (year-end)

 

10-year UST Note Yield:                 2.70% (year-end)

 

CPI (2017 average):            2.0%

 

Core CPI (2017 Average):              2.2%

 

PCE (2017 Average):                      1.8%

 

Core PCE (2017 Average):            2.0%

 

GDP (2017 Average):                      2.6%

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