BlockBeats News, March 11th: UBS Group Chief Economist Paul Donovan pointed out that although the US consumer price index data for February preceded the recent market turmoil, it is still crucial for the Fed’s policy-making.
He expected that the potential inflation pressure reflected in today’s data should be moderate and believed that the Fed should only respond to broad-based price increases. Donovan emphasized that the Fed lacks policy tools to deal with isolated market disruptions. He also stated that the nearly 27% increase in gasoline prices from the January low would not be reflected in today’s data, but consumers would notice the surge in prices of some grocery items. (FXStreet)
