The latest price and labor data did not change the narrative about the Federal Reserve’s likely near-term monetary policy course. The consensus view is that the central bank will keep the federal funds rate higher, and for a longer period, in an attempt to effectively fight inflation. This thinking has pushed Treasury market yields higher. The August Consumer Price Index (CPI) made for a mixed reading. The CPI rose 0.6%, month to month, and 3.7%...

The Federal Reserve has received a number of key reports ahead of its late-September Federal Open Market Committee (FOMC) meeting. The central bank, which said it will be data-driven in formulating near-term monetary policy, had to like the continued moderation in the Personal Consumption Expenditures (PCE) Price Index. According to the Labor Department, the PCE Price Index rose 2.5% in the second quarter, versus the prior estimate of 2.6%. Likewise, the July PCE and core-PCE...

The Federal Reserve has maintained its hawkish monetary policy stance. This was evident in the release of the minutes from the July Federal Open Market Committee (FOMC) meeting. The central bank noted upside risks of inflation that could require additional monetary tightening. Fed leaders also said that disinflation in core prices, which exclude the more volatile food and energy components, was still not significant enough for the lead bank to think its job of promoting...