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Might the FOMC Spike the Ball Before the End Zone?

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This morning we received the latest report on inflation.  In October, the Consumer Price Index (CPI) rose by 0.2% on a headline basis and 0.3% excluding food and energy.  The readings were in-line with market consensus, but this was the third month in a row that the core rose by 0.3%.  That annualizes to about 3.6%.  The last time I checked, 3.6% was meaningfully above 2%.

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