Data:; Chart: Axios Visuals

The core consumer price index, which excludes volatile food and energy costs, fell 0.4% in April, the biggest drop in the index on record, dating back to 1957. Compared with April of last year, the core CPI rose 1.4%, the smallest annual gain since 2011.

The state of play: March's core CPI reading was also negative, marking the first back-to-back negative prints since 1982.

What it means: "Economic models, as well as lived experience, tell us that prices should be falling with demand in free-fall, and in today’s release it is clear that they are," AllianceBernstein senior economist Eric Winograd says in an email.

  • "Inflation is not the focus of the market, nor of policy-makers, for now or for the foreseeable future."

Yes, but: That may be a mistake, says BlackRock’s CIO of global fixed income Rick Rieder.

  • "There’s a danger in merely extrapolating recent trends, and we think 2020’s broad deflationary influences may well lead to higher rates of inflation next year," he says in a note to clients.
  • "We think that even a modest re-setting of oil prices over the next 18 months could drive 2021 inflation in a manner that offsets some of the declines occurring now."

Between the lines: Both Rieder and Winograd see the "monumental" policy response from the Fed and the government as likely to drive inflation well above levels currently priced in by the market, which Rieder calls "unrealistic and excessively pessimistic."

  • David Zervos, chief market strategist at Jefferies, goes further, asserting that "the extraordinary policy response to COVID-19 marks the beginning of the end of the disinflationary era in existence since the early 1980s."

Go deeper: The federal government's coronavirus response risks spiking inflation

Go deeper

Dion Rabouin, author of Markets
Aug 17, 2020 - Economy & Business

Consumer sentiment isn't jumping alongside stock prices

Data: University of Michigan; Chart: Axios Visuals

While Wall Street has gotten more excited about the economy since March, U.S. household sentiment remains "depressed," says Jon Hill, rates strategist at BMO Capital Markets.

Driving the news: The University of Michigan's consumer sentiment index is still near its lowest since 2013.

Louisville officer: "Breonna Taylor would be alive" if we had served no-knock warrant

Breonna Taylor memorial in Louisville. Photo: Brandon Bell/Getty Images

Sgt. Jonathan Mattingly, the Louisville officer who led the botched police raid that caused the death of Breonna Taylor, said the No. 1 thing he wishes he had done differently is either served a "no-knock" warrant or given five to 10 seconds before entering the apartment: "Breonna Taylor would be alive, 100 percent."

Driving the news: Mattingly, who spoke to ABC News and Louisville's Courier Journal for his public interview, was shot in the leg in the initial moments of the March 13 raid. Mattingly did not face any charges after Kentucky Attorney General Daniel Cameron said he and another officer were "justified" in returning fire to protect themselves against Taylor's boyfriend.

U.S. vs. Google — the siege begins

Illustration: Sarah Grillo/Axios

The Justice Department fired the starter pistol on what's likely to be a years-long legal siege of Big Tech by the U.S. government when it filed a major antitrust suit Tuesday against Google.

The big picture: Once a generation, it seems, federal regulators decide to take on a dominant tech company. Two decades ago, Microsoft was the target; two decades before that, IBM.

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