Fed Minutes can be a bit frustrating to read. Here is an example.

“Some participants emphasize that the recent increases in inflation had been relatively Broad Based”.

Take a look at the graph below. The top three items are Auto Insurance, Rent, and Housing. Housing and Transportation make up 58.7% of the Consumer Price Index (CPI).

If we pull these out, inflation is only up 0.27% year over year. This is not broad-based but specific.

Inflation is stubborn, that is true, but its makeup is also as important.

The bond market reacted to the news today on Initial Jobless Claims and the Fed Minutes. Rates slipped but only a bit.