US CPI/PPI - 2025-04-09

Markets don't seem to care much that we just had a glorious beat in CPI, both headline and core. The narrative is that it's depressed consumer demand because of tariffs. If it had been a miss, the narrative would have been it was pre-emptive buying because of tariffs. You've got to hand it to Trump in one respect, at least -- he sure knows how to rivet the public's mind onto an issue! But the underlying reality here is that this helps remove a barrier to the deployment of a Powell put, if necessary. All to the good.