Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
Why The Fed Is Watching Wholesale Prices
With October jobs data showing 165,000 new hires and a dip in unemployment to 4.1 percent, the market is focused on wage growth. But Lucas and Luna argue the real signal for Federal Reserve policy lies in China’s wholesale inflation, which has hit a four-year high. This episode explores how global supply-side pressures are bypassing consumer price controls, creating a hidden cost push that core CPI misses. We break down why the S&P 500 and bond yields are reacting to these upstream signals, and what a 2.23 percent breakeven inflation rate actually tells us about the next quarter…
The skinny
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