In this clip from today’s edition of The Macro Show, Hedgeye CEO Keith McCullough breaks down today’s PPI print, and his outlook for the next month’s CPI & PPI prints (along with the odds the Fed hikes in March.)
“PPI (Producer Price Index) might go up next month. All the cyclical components just went up, and we’re halfway through the month. We’ll see how it goes; we’re not here to make grandstanding calls that stand the test of time in our minds. We are reading and reacting to the data.
The odds of PPI & CPI staying in-line with where they were, at least sequentially [are non-zero]; don’t forget that Shelter (which was the biggest acceleration this most recent month) has an easier compare in the coming month. We know how tops happen – up the roller coaster slowly…”
“The Fed might very well go for the rate hike in March; I didn’t think they were going to, but now I do. And if that changes, I’ll let you know. If this commodity move wasn’t there, I wouldn’t have said that.”
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