Economic Data Dashes Hopes for Near-Term Fed Rate Cuts As Inflation Stays High and Jobs Market Tight

• Inflation remains high, with PPI and CPI exceeding forecasts in February, making near-term Fed interest rate cuts unlikely • Labor market stays strong, with accelerated job growth in February despite rise in unemployment rate to 2-year high • Retail sales rose just 0.6% in February, below forecasts, signaling consumer pullback due to inflation • Economic data indicates Fed unlikely to cut rates before June as inflation stays elevated and job market tight • Despite cooled retail sales showing some economic slowing, continued inflation and hiring complicate potential for imminent rate cuts