As U.S. inflation softens, focus shifts to the Fed’s next move on rates [Video]

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We’ve had some cooler than expected inflation data out of the US this week supporting the bond market, but with policy uncertainty around the Trump White House, inflation fears perhaps still lingering under the surface. What should investors be thinking about? Joining us now to discuss is Sam Chai, VP for Active Fixed Income Portfolio Management at TD Asset Management. Sam, great to have you back on the program.

Pleasure to be here.

As we show, there’s some relief, I guess, in the markets right now, whether it’s the equity markets, the bond markets, which you obviously specialize in. Someone might take a look at this inflation print out of the United States and say, well, 2.9% headline inflation. Isn’t this what we expected? What’s happening beneath the surface to have this rally kick off?

Sure. Let’s dig in a bit more to the data released today. So we had US headline and core …