Jeffrey Rosenkranz | Source | Portfolio Manager, Fixed Income at Shelton Capital Management

“With the Fed’s language about a slowing pace being appropriate at some point and concern about over-tightening, investors looking for a dovish pivot might be encouraged. On the other hand, strong words about the risks of the market not believing their forward guidance and resolve to conquer inflation, deeming ongoing hikes as appropriate, and downplaying the impact of cooling commodity prices all serve as reminders that the fight continues and financial conditions need to remain tight.”

"the CPI report is a disappointing backslide from recent improving trends. Components such as rent and food continue to remain red-hot and are not likely to recede imminently. While investors should understand that Fed policy operates with a lag, especially for certain sectors such as housing — the waiting is the hardest part. The political implications of today’s data are also not to be ignored, as they represent the last CPI data before the November mid-term elections.”