1、Housing Costs Continue to Rise
The Labor Department’s index for housing costs continued to rise, increasing 0.7% in August over the prior month, when it rose by 0.5%.
Shelter costs were up by 6.2% over the prior 12 months. Prices for lodging away from home had declined in June and July but rose slightly, by 0.1%, in August.
Shelter is the largest single component of the consumer price index.
2、BOA revised its economy projection upward due to strong labor and consumer spending data.
3、Black Rock CEO Fink thinks the recent decline of productivity by 7.4% in Q1 and 4.1% in Q2, is due to WFH, bring employees back to offices can increase productivity and decrease inflation.
4、Fed Chair Powell and Vice chair Brainald vowed to fight inflation as long as it takes, means aggressive tightening cycle could still have a long run way before it turns.
5、Goldman Sachs increased its rate hike forecasts to 75/50bps for Sept/Nov, then 25bps on Dec, rate hike cycle could extended to 2023.
Its research paper also expecting 39% of metros to experience home price decline in 2023, mostly concentrated in West, for East region like NYC and Boston, could still see price appreciation.