Early Morning with Dave

Early Morning with Dave

Fed Hawks Take Center Stage

But inflation data remain tame

David Rosenberg's avatar
David Rosenberg
Oct 03, 2023
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Highlights

  • Treasury yields and rate hike odds rise amid the hawkish Fedspeak on “sticky” inflation… 

  • … but with rents falling in real time and CPI ex. shelter is running at 1.9% YoY, this narrative will not have legs 

  • We know that markets mean revert, and the math has significant implications for pricing 

  • For housing to be affordable again interest rates need to drop by 200 basis points 

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