Bloomberg Surveillance · Thursday, September 10, 2026
Greg Peters, co-CIO of PGM Credit, believes inflation is persistent in the system and well above the Fed's target, even excluding volatile components. He argues that the Federal Reserve will need to respond to these readings. Peters suggests that focusing too intently on minute CPI details is 'too cute by half' and that a stronger CPI print tomorrow would likely signal a Fed move.
“I mean, everywhere I look, I see inflation stuck in the system. You I think we're well above trend here or target. This is another reading that strongly suggests that we're well away from target, even excluding the more volatile measures, you're above target. And so I think the Fed has to start paying attention here.”
“What's interesting post the Waller speech is that all eyes are focused on the CPI. And you hear investors talking about out two decimal places. So I think that's too cute by a half, of course. But you know, as far as I can tell, you know, inflation is in the system. It's not just energy driving it. And I think the Fed will have to respond.”
“And I think if you get anything close to kind of 0.3, I think that's a signal that the Fed moves. But it's an open question. There's a lot of opacity here. Of course, we're not really sure what the committee is truly thinking and who's on board. But if you just listen on balance to what's being said, You know, I think a stronger reading suggests that they will move.”