"Why Capital Flows Matter More Than Fed Rates"

KR Opinion

As we reach the middle of the month, we're receiving another crucial update on the inflation landscape through the release of CPI and PPI data. Market expectations indicate a modest uptick in the CPI of approximately 0.1%, which aligns with a broader narrative I've been tracking over the past several months since Liberation Day. The key question has been whether the tariffs implemented since April would generate any meaningful inflationary pressures. These tariffs have fluctuated considerably but now appear to be stabilizing at an average rate of around 18% across various sectors.