TechFlow News, March 11: Paul Donovan, Chief Economist at UBS Group, stated that although the U.S. Consumer Price Index (CPI) data for February predates recent market turbulence, it remains critically important for Federal Reserve policymaking. He expects underlying inflationary pressures reflected in today’s data to be modest and believes the Fed should respond only to broad-based price increases. Donovan emphasized that the Fed lacks policy tools to address isolated market disruptions. He also noted that the nearly 27% rise in gasoline prices from their January lows will not yet appear in today’s data, though consumers will notice sharp price spikes for certain grocery items. (Jinshi)
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