After running down a bloody week to end a bloody month and quarter, and the macro news for the week of Sept. 26-30, Monday Morning Minutes hosts Jeff Mayberry and Samuel Lau field a question from a listener on the impact the shelter cost component has on the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) Price Index (25:58). (For more on how the shelter components work in these inflation indicators, check out MMM episodes 13* and 30**.) As part of their discussion, Jeff and Sam review how the Federal Reserve Bank of Dallas computes shelter cost’s impact on inflation (30:54) as well as how they think shelter cost inflation will influence Fed officials’ messaging (35:30).
Jeff and Sam kick off the episode with a red rundown for the week, month and quarter (1:50), with the pain shared across equities, fixed income (6:34) and commodities (10:24). On the macro front (16:57), they take a look at some durable goods and home prices data before noting the continued strength of the labor market. Jeff and Sam also provide a summation of the week’s messaging from Fed officials: hawk, hawk, hawk (20:31). Next week will be busy with manufacturing, services and labor force numbers (43:19).
*MMM Episode 13: Recap of the April 26-30 Market Week
**MMM Episode 30: August 23-27 Recap, Question of the Week and Outlook
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