Inflation Data Spooks Markets, But Fed Hints Rate Cuts Still Possible

• Hotter-than-expected inflation data dashed hopes for a March rate cut and sent stocks reeling • Comments from Federal Reserve officials provided some reassurance that rate cuts will come eventually • El-Erian watching economic indicators like retail sales, corporate earnings reports, housing market • Companies with more exposure to lower-income households seeing economic softness • Investors should be wary of a Fed that is too reactive to data rather than proactive