Weekend Wall Street #39 - Tax Week, Fed Blackout, and Top Trades for 4/17-4/22
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Happy Sunday everyone and welcome back to Weekend Wall Street. We are entering the second half of April as the year continues to fly by, so get ready tot take a look into some of the top catalysts and trades for this week.
Last week we got two big inflation numbers, the CPI and the PPI number, which both showed inflation moderating. This showed the market that the Fed’s monetary policy is finally helping inflation with CPI down over 1% from February. Jobless claims also rose, which helped give the market the impression that the Fed’s work is also hitting the labor market. Remember, higher unemployment means less money in the system and therefore helps inflation.
The forecast currently shows a 77% chance for a 25bps hike in May and then a pause in June.