Market Brief, North America

Consumer price growth accelerated by slightly less than expected in the United States last month, helping lower short-term yields and putting downward pressure on the dollar. According to data published by the Bureau of Labor Statistics this morning, the core consumer price index—with highly-volatile food and energy prices excluded—rose 0.2 percent in December from the prior month, and was up 2.6 percent over the same period a year prior. This narrowly missed consensus estimates among economists polled by the major data providers ahead of the release. On a headline all-items basis, prices climbed 0.3 percent month-over-month, and were up 2.7...

The US dollar, Treasuries, and stock market indices are all trading slightly lower this morning after the Trump administration stepped up its assault on the Federal Reserve, launching a criminal investigation into Chair Jerome Powell’s management of a headquarters renovation project. According to a highly unusual video statement published last night, the Chair said he had received grand jury subpoenas from the Justice Department that threaten a criminal indictment in a case that most market participants see as part of an effort to reduce the Fed’s independence and push monetary policy into more accommodative territory. “This is about whether the...