April CPI data is out: annual rate at 3.8%, higher than previous and expected values; monthly rate at 0.6%, lower than previous but in line with expectations. Core annual and monthly rates also exceeded expectations. Looking purely at the data, it’s definitely bearish. But this week, the market’s focus is still on Trump’s visit to China, so the overall impact is limited. We might need to wait for the outcomes of the visit and tie it together with the next FOMC meeting. Powell stepping down, Waller taking over—this data is just a small piece of the overall play.