Key US inflation measure posts largest annual increase in three years - Reuters
Macro
The Fed's preferred inflation gauge posted its largest annual increase in three years, signaling persistent price pressures that complicate the Fed's rate-cut trajectory. This raises the probability of a 'higher for longer' rates regime, pressuring rate-sensitive equities and long-duration bonds while supporting the dollar and short-end yields.
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↓ SHORT-4% target+2% stop2-4 weeks
Short TLT and rate-sensitive sectors (XLU, XLRE) as sticky inflation kills near-term Fed cut expectations and long-duration bonds re-price higher yields.