• Self-reinforcing virtual circle of final demand is increasingly becoming established
  • Believes recent spike in short-term inflation measures will not persist
  • Would support change in policy if low inflation objective appears at risk, does not seem to be case now
  • Increases in cost of gasoline, food, forcing adjustments in household budgets
  • Interprets Fed price stability mandate as including food and energy costs
  • Sharp recent decline in jobless rate “not all positive,” suggests discouraged workers leaving workforce

Meanwhile back at the ranch, EUR/USD sits at 1.4128 having been as low as 1.4119 in wake of upward revision to US GDP.

As mentioned earlier, talk of buy orders 1.4100/10, stops below.