08/20

Most headline inflation measures are still above-average levels, but are lagging indicators of inflation. The Fed knows this. Thus, I expect members to continue to talk modestly hawkish while taking no additional policy action. More dovish talk will likely occur when headline inflation numbers begin showing meaningful deceleration.

The ISE Sentiment Index is plunging again today, down 32% to a depressed level of 55. It has been this low only one other time.

Put/Call 1.16 -1.69%