🚨 US ECONOMY JUST MADE THE FED’S JOB HARDER.
September ISM Manufacturing PMI came in at 54.5 — the 9th straight month of expansion.
Demand remains strong, while the ISM Prices Index surged to 77.9, signaling serious cost pressure.
Now the Fed faces a tough trade-off:
Hold rates → inflation pressure and yields could stay elevated.
Hike rates → inflation may cool, but economic growth faces more pressure.
The economy is still running hot enough to keep the Fed trapped between inflation and growth.
No easy path from here.
September ISM Manufacturing PMI came in at 54.5 — the 9th straight month of expansion.
Demand remains strong, while the ISM Prices Index surged to 77.9, signaling serious cost pressure.
Now the Fed faces a tough trade-off:
Hold rates → inflation pressure and yields could stay elevated.
Hike rates → inflation may cool, but economic growth faces more pressure.
The economy is still running hot enough to keep the Fed trapped between inflation and growth.
No easy path from here.
