John Authers argues the PCE was hot, but Kevin Warsh's preferred trimmed-mean measure looks more lenient. The market believes the energy shock is over, allowing inflation expectations to fall. However, the AI trade shows hallmarks of a top: extreme volatility in Korea, Micron's rally failing to lift the broader market, and a short-the-Magnificent-7 trade working. A significant correction is likely soon.
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Bloomberg Business Publications
7.0
Financial Media
John Authers 8.5
Financial Media
John Authers 8.5
6/26/2026 6:48:42 AM
metals
Gold price really came off after Kevin Warsh gave his first press conference and chose to come over as a fairly unapologetic hawk.
ndx
The degree of volatility we're seeing in South Korea has all the hallmarks of a top that is fast approaching. A significant correction is likely soon.
wti
People have really got the bit between their teeth that the energy shock is completely over.
yields
Authers says the market has over-adjusted to Warsh's hawkishness, but the trimmed-mean PCE is lenient. Inflation expectations are coming down, but the Fed is seen as hawkish, creating a tug-of-war that keeps yields rangebound.
