CPI & FOMC: "still going to tighten monetary policy but ... moving in the right direction"

The data ICYMI:

• US November CPI +7.1% y/y vs +7.3% expected

Responses to the CPI posted earlier:

• Slower than expected rise in US CPI adds to the case for a sooner, lower terminal rate
• Goldman Sachs FOMC preview - expect a higher peak rate projection, and larger cuts in 2023

• Timiraos: Fed on track for 50 bps tomorrow but lower inflation could complicate 5% target

This now via Oxford Economics (via CNN interview)

• I think we’re finally getting some indication that we’re getting relief on the inflation front

Adds that the slowing seen in the data "is key for the Fed to ease their foot off the brake":

• They’re not going to take it fully off the brake, they’re still going to tighten monetary policy, but we’re moving in the right direction

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Federal Open Market Committee (FOMC) rate hike coming up at 1900 GMT, Powell's presser follows at 1930 GMT.