UBS: Lag Effect to Keep Inflation Muted Tonight

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 expects that the potential inflation pressure reflected in today's data should be moderate and believes that the Fed should only react to broad-based price increases. Donovan emphasized that the Fed lacks policy tools to address isolated market disruptions. He also noted that the nearly 27% increase in gasoline prices from the January low point will not be reflected in today's data, but consumers will notice the surge in prices of certain grocery items. (Jinshi)