Joshua Shapiro Core Quotations

Our own belief remains that while core inflation could well inch up in the coming months, it is unlikely to accelerate significantly.

We continue to expect the Fed funds target to reach 5 percent in the second quarter of next year, which is where we see the tightening process ending. Comments from Fed officials suggest that they expect only a temporary hit to growth from higher energy prices, while concern about a drift up in core inflation is increasing.

While this was obviously a good month, we don't expect this to continue. We think it's going to be a slow drift up in core inflation going forward.

The Fed isn't going to get exited about inflation in the labor market. At this stage they are focusing on core inflation at the consumer level and growth. Certainly, the news lately on the growth side has been quite good.