Trading Insights: US Fed winning “sticky” inflation battle

Market Commentary

Bravo to the US Fed

It seems that the US Fed indeed has the skill set to do a good job. Sticky inflation is basically everything apart from volatile food and energy items.

Removing food and energy from measuring inflation allows the analyst to look at inflation while removing the noise that high volatile food and energy prices add to the top line inflation.

The above chart illustrates the year-to-date US consumer price index less Food and Energy.

Boo to the mass media

The US stock markets and most developed stock markets around the world have been enjoying tremendous gains since the start of 2023.

Recession fears proved false so far…

Despite the constant media fear mantra that higher interest rates would push stock markets lower and drive the US economy into a recession, the US100 CFD has advanced over 44% year to date.

Source: FRBSF July 18 2023 8:05 UTC

The above chart illustrates the year-to-date daily news sentiment index from the US Federal Reserve Bank of San Franciso.

This index is a high-frequency measurement of the economic sentiment based on analysis of daily economic related news articles.

The chart above illustrates the year-to-date percentage performance of the US 100 CFD.

The US100 CFD tracks the US100 stock index, CFD traders can access exposure to the US100 price action via US100 CFD trading.

Global stock indices year to date enjoying very impressive gains despite the negative media sentiment

Today’s economic calendar

Source: TradingView / J. Knobel July 18 2023 6:34 AM UTC

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