UBS: The lag effect causes tonight's inflation to be moderate.

SmartContractAuditor · 2026-03-11T10:21:19+00:00

UBS Group Chief Economist Paul Donovan pointed out that although the U.S. February Consumer Price Index data came before market fluctuations, it remains important for Federal Reserve policy. He predicts that potential inflation pressures are moderate and emphasizes that the Federal Reserve should respond to broad price increases rather than individual market disturbances. Rising gasoline prices will influence consumers' perceptions.

SmartContractAuditor

2026-03-11 10:21:19

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Odaily Planet Daily reports that UBS Group Chief Economist Paul Donovan stated that the U.S. Consumer Price Index data for February, although released before recent market turbulence, remains crucial for Federal Reserve policy making. He expects the underlying inflation pressures reflected in today’s data to be moderate and believes the Fed should only respond to broad price increases. Donovan emphasized that the Federal Reserve lacks policy tools to address isolated market disturbances. He also noted that the nearly 27% increase in gasoline prices from January’s low will not be reflected in today’s data, but consumers will notice the surge in some grocery item prices. (Jin10)

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