Strategist: Powell's signal is clearly reflected in the CPI report

On November 15th, Quincy Krosby, chief global strategist at LPL Financial Corporation: Federal Reserve Chairperson Jerome Powell delivered a message that the market did not want to hear, but which was made clear in the last CPI report, that the Fed cannot yet declare victory in its efforts to curb inflation. Various interpretations of the CPI report suggest that some believe the Fed may cut interest rates in December, while others warn that the year-over-year rise in inflation indicates that the downward trajectory of inflation is running out of steam. Although the last mile to price stability may be bumpy, Powell again reminded the market that the Fed will not implement the series of rate cuts they want unless the labor market deteriorates - which the market certainly does not want.