The November CPI reported on Wednesday and is expected to be up 0.3% versus October, this is month over month (3.6% annualized). The October report on a year over year basis was up 2.6%. Energy prices are a little lower, but the wage growth is preventing CPI from moving toward the Fed’s target of 2%. CPI, this is an interesting report as the Fed meets next week and is expected to cut rates by .25%. The current FFR is 4.58%, officially 4.5%-4.75. The current 2-Year Treasury is 4.11%, with a .25% cut next week bringing the FFR down to where the bond market thinks is appropriate.

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