Macro Economic Mashup: Core CPI Lower Than Expected while US Industrial Output Strengthens

Markets are are up this morning after macro economic news releases for CPI and US Industrial Output:

Consumer Price Index: CPI is “Tame”

Although food, energy and gas prices have risen, the Labor Department said core consumer prices rose only 0.01% excluding food and energy. This beat Wall Street expectations of 0.02% and has the market less concerned about Fed tightening to stop inflation. QE2 will continue to sail …

US Industrial Output: What Depression?

The Federal Reserve continued the positive economic news with US Industrial Output rising 0.4% in November. Although October’s data was revised down to 0.2%, Wall Street was happy with a 0.3% rise in factory output, 1.9% jump for utilities, 0.8% increase for high tech goods, 0.9% pop for business equipment, and a 0.7% rise in factory activity (ex-autos). On the down side, motor vehicle and auto-part production fell 6%.

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