• All day, Light vehicle sales for April. The consensus is for light vehicle sales to increase to 17.3 million SAAR in April from 16.6 million in March (Seasonally Adjusted Annual Rate).

A few excerpts from a research piece by Goldman Sachs economist Jan Hatzius: Does the Fed Want Inflation to Overshoot?

Many investors believe that the Fed has significantly changed its attitude to an inflation overshoot above 2%. The strong version of this view is that Janet Yellen is stealthily following the “optimal control” path she laid out in 2012 and is therefore targeting an overshoot. We think this is wrong. …

The weaker version is that the target has become more unambiguously symmetric, and that many Fed officials would privately regard a limited overshoot as helping establish that symmetry in the public’s mind. This is probably correct. But the FOMC would still want to prevent the overshoot from getting too large, and would therefore tighten policy more quickly than in the baseline. …

From http://feedproxy.google.com/~r/CalculatedRisk/~3/HgNoa2hwxQo/tuesday-auto-sales.html