Nordea writes..The recent oil price slump may carry with it plenty of interesting effects. First of which is that weaker oil prices may rewrite the outlook for headline inflation across the world. A simple CPI vs energy price chart suggests that US CPI might plunge to 1% next year. While not necessarily a game-changer for hawkish central banks such as the Fed, it does become tougher to tighten policy in the face of a significant inflation undershot. Especially if GDP growth also slows, as we think will be the case. Can the Fed keep hiking 25bp/quarter in such a milieu?
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https://e-markets.nordea.com/#!/article/46740/fx-weekly-powell-pondering-pausing