Posted 3/14/2024, 3:05:15 PM
Hot Inflation Data Cools Hopes for Imminent Fed Rate Cut
- Fresh PPI data shows inflation remains sticky, likely reinforcing Fed's cautious approach to rate cuts
- Odds of a June rate cut slip to 63% following PPI release, down from 67% previously
- Former Fed official says one PPI reading probably won't dramatically affect Fed policy
- Hotter-than-expected inflation readings raise questions if rates will stay elevated for longer
- Uncertainty around timing of first rate cut and updates to Fed's dot plot at next week's meeting