This morning’s January FOMC Minutes preceded the stonking 7.5% January CPI print, but the tone suggested that the Committee was prepared to keep their options open and would review policy settings each meeting with the path of policy tightening dependent on economic and financial developments
The choppiness in market moves and swings in risk sentiment continued overnight as concerns over high inflation and the Ukraine crisis dented earlier optimism
Contrasting inflation readings highlighted divergences. Multi-decade highs were notched for UK annual CPI inflation (headline 5.5% yoy, mkt: 5.4% yoy, core CPI 4.4% yoy, mkt: 4.3% yoy) and Canadian headline CPI (5.1% yoy, mkt: 4.8% yoy)