U.S. cpi announcement, is the economy gradually stabilizing?

U.S. cpi announcement, is the economy gradually stabilizing?

NASDAQ 15,655(-1.80%)
U.S. Treasury 10-year interest rate 4.2651% (+1.98%)
Dollar Index 104.885p (+0.74%) NDF KRW 1,342 (+13)

#CPI #SoundAdjustment #Fear and Desire Index #RateRise

The market fell sharply as the CPI came in higher than expected in January. It was up 3.1% year-on-year, slightly higher than the estimate of 2.9%, but the market was shocked. The disappointment was also big because there were high expectations for inflation in the 2% range. Because the stock price has risen a lot recently, it seems that they sold the stock under the pretext of CPI. 463 of the S&P 500 stocks fell, which was enough to scare the market. However, as stocks were adjusted, the CNBC fear&greed index fell a lot in a day. The fear and greed index, which rose to 78p on Monday, fell to 74, the "extreme greed" section, falling to the greed section. It was an event that cooled the overheated market a little.

Talking a little more about CPI, rising housing costs have affected CPI. It's up 0.6% month-on-month, affecting about two-thirds of January's gains. Inflation worries have grown as core CPI (MoM) hit 0.4% higher than the previous month's 0.3%, as well as projections (0.3%). Expectations for Fed Watch's May rate cut have come down to the 30% range and the likelihood of a freeze has doubled to 64%. The possibility of an early rate cut has significantly receded, sending government bond rates and dollar indices soaring.

Most of the Nasdaq's top cap stocks, except Nvidia, fell. Nvidia gained ground alone, with Eli Lilly and Visa rising slightly in the S&P 500 and most stocks falling, perhaps due to expectations for next week's earnings announcement. ARM Holdings, which recently saw a stock surge, ended down 19%.

The market was surprised by higher-than-expected prices, but I think it's a solid adjustment. Prices are higher than expected, but they're steadily falling year-on-year. It's thought to be an adjustment to over-expectations, and it's an opportunity to buy cheaper. (Central Bank)
After the global financial crisis, it has been revealed that the central bank should lead the economy in a new way.
The central bank was only aiming to manage the consumer price index, rather than overlooking asset price inflation and attempting to deflate the bubble, the first lesson it accidentally learned during the 1994 collapse of hedge fund leverage.
If the Fed had regulated leverage and raised interest rates in the mid-2000s, events would not have occurred in such a crazy chain. If this were the case, American households would not have increased their loans from 66% of GDP in 1997 to 100% in 2007. Housing finance companies would not have increased their mortgage loans to such a degree, ignoring the borrower's ability to respond. Fannie Mae and Freddie Mac, the US government-founded housing loan companies, would not have collapsed and been in the government's arms.

The above is a quote from Sebastian Palami.

Let's take a look at whether Korea's fertility rate has plummeted since 2016 or not due to asset price inflation that began there. If the central bank implements a central bank policy with the idea that the fertility rate will naturally increase if asset inflation is resolved, the young people who will live in this world will change a lot. Meeting with Pakistan's Central Bank Governor

Ambassador Park Ki-jun met with the Governor of the Central Bank of Pakistan on February 15 (Thursday), asked Korean companies to enter Pakistan and resolve their difficulties, and discussed ways to promote economic exchanges between the two countries.

Meeting with the Governor of the State Bank of Pakistan

On the 15th, Ambassador Park Kijun had a meeting with Mr. Jameel Ahmad, the governor of the State Bank of Pakistan. Ambassador and Governor discovered the direction of economic exchanges between Korea and Pakistan. Also, the Ambassador asked for the governor's warm attendance and support of the difficulties of Korean entrepreneurs in Pakistan. Today, I stopped by the Central Bank of Libya to talk about the experience and status of economic cooperation between the two countries and asked for interest and support for Korean companies exporting to Libya.

The building of the Central Bank of Libya that has been built more than 100 years ago boasted its magnificent appearance, and its facade, an artificial lake (water filled with seawater), cooled the eyes of the viewer. (In fact, two precious relatives died between yesterday and today. My eyes were a little swollen because I was on my way out after getting in touch at dawn while I was sleeping.)

On the other hand, about half of the vehicles encountered on the way to and from Korea were made in Korea, so it gave me a friendly feeling.

Today, I had the honor of visiting the Central Bank of Libya and engaging in fruitful discussions with Governor Sadiq Omar Al-Kabir regarding the economic cooperation and current state of affairs between our nations. During our meeting, I also sought interest and support for our companies involved in exporting goods to Libya.

The Central Bank of Libya, a venerable structure standing for more than a century, exudes magnificence with its grandeur. The sight of the artificial lake adorning its facade, filled with crystalline seawater, offered a refreshing spectacle. (Regrettably, the news of the passing of two dear relatives between yesterday and today left me with a heavy heart as I embarked on this journey, my eyes betraying a hint of sorrow.)

On a different note, it was noteworthy to observe that approximately half of the vehicles encountered on my journey were of Korean origin, evoking a sense of familiarity and connection.