by Bill McBride on 12/09/2014 06:44:00 PM
Tuesday, December 09, 2014
An inflation gauge closely watched by Federal Reserve officials has fallen to the lowest level since the financial crisis, potentially complicating the interest-rate outlook as investors brace for a likely Fed rate increase as soon as mid-2015.With the unemployment rate still elevated, inflation below target, and inflation expectations falling, I expect the Fed will be patient.
The five-year forward five-year inflation breakeven rate hit 2.0185% this month, the lowest since Dec. 31, 2008, according to the latest data provided by Rabobank.
• At 7:00 AM ET, Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index.
• At 10:00 AM, Q3 Quarterly Services Report from the Census Bureau.
• At 2:00 PM, the Monthly Treasury Budget Statement for November.
Posted by Bill McBride on 12/09/2014 06:44:00 PM