Why the Fed’s inflation playbook is not necessarily working

Stocks are mixed (^DJI, ^IXIC, ^GSPC) Tuesday morning after February's Consumer Price Index (CPI) reading showed headline and core inflation to have risen slightly year-over-year. Should this news be expected to deter the Federal Reserve from any future interest rate cuts?
Easterly EAB Risk Solutions Global Macro Strategist Arnim Holzer sits down with Yahoo Finance in-studio to discuss what post-pandemic inflation readings are indicating to Fed officials, investors, and equity markets at large.
"The reaction post-pandemic has been a very different reaction from what we've seen in prior economic situations. As a result, the narratives that we expect — which is the Fed to raise rates, inflation to come down — is not operating according to those narratives. So we think, actually, that the Fed is right to be data-dependent, but not necessarily to expect the same narrative, the same script. We think that spells volatility. We think that spells a very different kind of diversification. And we really think that investors need to focus on the long-term here..."
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