SD Ventures CIO Alexander Lis said US CPI broadly matched market expectations,
with both headline YoY and core readings roughly as forecast. The print was not
strong but also insufficient to reassure markets. This was the final inflation
release ahead of the next FOMC meeting, so the key variable is the Fed’s
reaction. Next week should show whether inflation is high enough to prompt the
Fed to signal a possible rate hike; that signal could set market direction for
months.
