Rational Thinking – US Inflation Falters Last week:GBP Parliament resumed after Easter recess Cross-party Brexit talks re-opened Reports that May could push for a 4th vote on her withdrawal agreement March of the Brexit Party SNP announce plan for a second independence referendum USD Inflation falters overshadowing strong US 1st quarter growth GDP increased at 3.2% vs 2% estimate Fed’s preferred gauge on inflation only increased 1.3% vs 1.8% expectation U.S. durable goods rose 2.7% after 1.1% drop in February This week: GBP BOE Meeting and Interest Rate decision; expected to be unchanged at 0.75% EUR GDP (YoY) & (QoQ) for Q1; 1.1% and 0.3% respectively CPI (YoY); 1.6% against previous of 1.4% USD ISM Manufacturing PMI (April); 54.8 against a previous of 55.3 Fed Meeting and Policy statement; interest rate unchanged at 2.5% Average hourly earnings; 3.4% against a previous 3.2% Nonfarm payroll; 180k jobs created against a previous reading of 196k ISM non-manufacturing PMI (Apr); 57.2 against previous of 56.1