Resulting in “funny” headlines (with time stamps):
Barron’s 9:26 AM: “Dow Drops as Too Much Inflation Rocks Stocks.”
CNN Money 10:56 AM: “Stocks Shrug Off Inflation Data”
The core CPI was 0.3% month-on-month, higher than expected (0.2%) and the highest in two years. Since it wasn’t as low as analysts were anticipating, that “confirms” the “boom hysteria”.
David Beckworth put it succinctly:
My prediction: Fed will be emboldened to raise rates & talk up more rate hikes. This tightening will cause inflation to drift back below 2%. And Fed officials will wonder once again why inflation remains low.