Featured Market Data
Soft Landing Narrative Returns
While the first quarter brought stronger than expected inflation and growth, economic data cooled in the second quarter. Core month-over-month CPI rose a faster than expected 0.4% in each of the first three months of the year but slowed to 0.3% and 0.2% in April and May, respectively. Core PCE, the Fed’s preferred measure of inflation, slowed even more to 0.1% in May. Some growth measures also slowed including May ISM manufacturing and retail sales. However, May nonfarm payrolls came in higher than expected. If softer growth trends continue, Fed Chairman Powell may soon gain the confidence he is seeking that inflation is returning to the Fed’s 2% target.
Source: FactSet
