What a difference a day makes. Fed Governor and voting member Michelle Bowman stated that the Fed’s actions are bringing down inflation.

Why this is important is that she was one of the more hawkish members, indicating two more rate hikes just last month.

Thursday is the day the CPI – Consumer Price Index inflation report comes out for the month of December. We may see a slight rise in inflation from 3.1% to 3.2% or it might remain flat.

The Core inflation, which strips out food and energy, is expected to drop, which the bond market will likely favor.