Inflation is moving in the right direction, at least the type the Fed cares about: core inflation. It rose 2% y/y in November as expected. M/m it is +0.2% as predicted. Headline inflation, that includes also the volatile gasoline prices, remained flat m/m but surprised with +0.5% y/y. The Empire State Manufacturing Index recovered to -4.6 points, still in negative territory.

The Fed has what it needs to hike, also in terms of inflation.

Read the rest of the article US core inflation at 2% as expected – the Fed can hike