The Fed would like to see higher inflation. But wanting it more is not a policy. Other than “lower for longer” and more QE, it needs help from fiscal policy and from changes in global trends that are out of its control. This week saw further capitulation of inflation-sensitive assets, such as stocks and precious metals. Election jitters are growing and the market will have a hard time developing a strong trend in either direction before the results are known, which may not be on Nov 3rd. This week’s edition contains charts and commentary on:
1. Inflation Target is Hard to Hit
2. Inflation Breakevens Move Lower With Gold
3. Bounce in U.S. Dollar Tracks Real Yields
4. Metals & Miners Give Back Gains
5. High Yield Indigestion
6. Bank Woes Persist
7. Italian 30-Year Bond Yield Hits a New Low
8. Mexican Peso Weakens as Credit Risk Rises
9. RevPAR Decline by Location
10. Election Impact on Interest Rates
