"Most folks in markets know that the BLS takes current rents and essentially spreads those price changes over a couple of quarters. Current readings on rents have been very weak, so a continued fall in the official statistics for the rest of the year seems clear. Indeed, despite the surge in immigration over the last year and this, multifamily vacancies are approaching historical highs. In housing inflation lies the clearest signal for the path of inflation – and that path is lower."
-Morgan Stanley
There’s a growing belief that this week’s CPI could come in way below expectations, giving the Fed the green light to cut interest rates in the
not-to-distant future.
If indeed, inflation cooled last month, indices should find their way to all-time-highs in no time. But while a rising tide lifts all boats, some assets will benefit more than others. We’ll get to those shortly; first, let’s look at how the market is setting up for the CPI.
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