Hotter Than Expected Inflation Data Sparks Growth Concerns and Market Unease Over Fed Rate Path
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Core CPI rose faster than expected in December, sparking concerns about the pace of inflation.
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S&P 500 turned lower following the hotter-than-expected inflation data, as investors weighed the impact on Fed policy.
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Markets still expect a quarter-point rate cut in March, but odds of 1.5 percentage points in 2023 cuts slipped.
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Friday's PPI data could provide more clues into the Fed's preferred core PCE inflation gauge.
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Higher oil prices on news of Iran seizing a tanker may have also influenced market reaction to CPI data.