The US will release the CPI tonight (12th). Matt Hornbach, Global Head of Macro Strategy at Morgan Stanley, forecast this round of inflation data to be "spicier". It will be the first in a series of data releases this week that will ultimately feed into the Federal Reserves' most closely watched inflation gauge, the core PCE price index.Related News CMBI Cuts Coinbase Global, Inc. (COIN.US) TP to USD235, Reiterates Buy; Lowers Revenue ForecastsThe Fed will hold its next rate-setting meeting on June 16-17, having earlier stated that the PCE price index is an important reference for its interest rate decisions. Hornbach noted that, based on past experience, companies may not necessarily pass inflationary pressures on to consumers, akin to the situation after the US government levied additional tariffs, when consumer price hikes were not as severe as expected. At present, companies are facing enormous pressures from soaring energy costs and the expenses associated with AI infrastructure construction. Related NewsContinuing Jobless Claims for May/02 in the United States is 1782.0K, higher than the previous value of 1758.0K. The forecast was 1790K.However, it remains uncertain whether firms will ultimately be able to fully pass these costs on to consumers. As such, Morgan Stanley forecast that the Fed will keep interest rates unchanged this year.
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