Analysts were expecting 0.3% for the headline and 0.1% for the core.
This means major breathing room for Bernanke. Yesterday’s hot PPI number had heightened concerns that traditional inflation measures were coming on a lot faster than expected.
The numbers seem to be soothing to markets. Stocks remain modestly lower, but have hardly budged.
The status quo lives!
Those who argue that the Fed’s little tightening like that isn’t the beginning of a major cycle change have a little more on their side now.