Posted 4/10/2024, 1:05:51 PM
Fed Rate Cut Odds Shift to September After Hotter Than Expected Inflation
- Traders bet Fed will wait until September to start cutting interest rates, after inflation report showed core CPI rose 0.4% in March
- Inflation accelerated to 3.5% year-over-year, up from 3.2% in February
- Backtracking on price pressures rules out June rate cut, makes July less likely
- First rate cut now seen in September, bringing rates to 5-5.25% range
- Traders now expect only 1 or 2 more cuts this year vs previous forecast of 3 cuts
