ICYMI - Fed’s Musalem says oil shock to keep core inflation near 3%

Fed's Musalem indicated that the recent oil shock is likely to maintain core inflation around 3%. This commentary suggests a potential for sustained inflationary pressures, which could influence monetary policy decisions. The mechanism at play here is inflation repricing, as higher oil prices can lead to increased costs across various sectors, affecting consumer prices. Assets most exposed include inflation-linked securities and commodities, particularly oil, due to their direct correlation with energy prices. Traders will be focused on upcoming CPI data releases to gauge the actual impact of these inflationary trends on the economy.

HIGH-impact news is typically a market-moving event with multi-pip or multi-percent intraday reactions. Examples include central bank rate decisions, major CPI/NFP releases, geopolitical shocks, mega-cap earnings beats/misses, and regulatory announcements. Traders typically position-reduce or hedge ahead of scheduled HIGH-impact events, and follow the wire in real time to react to unscheduled ones (war headlines, central-bank emergency statements, surprise corporate actions). The Trading News Terminal squawk box reads every HIGH-impact headline aloud the moment it hits the wire — so active traders don't have to stare at the feed.

Active traders typically follow a three-step workflow when a market-moving headline hits the wire: (1) read the headline on the terminal or hear it on the squawk box; (2) assess whether the news is already priced in (by checking intraday price action in the seconds before) or whether it's genuinely new information; (3) act — either entering a breakout position, fading an overreaction, or tightening stops on existing trades. Trading News Terminal's Pro plan delivers wire-grade headlines within seconds of the source, with automatic audio squawk on every HIGH-impact event, so the read-assess-act cycle never waits on a refresh button.