Inflation Data Stokes Economic Concerns and Rate Hike Uncertainty
• Consumer and producer inflation came in higher than expected, adding to economic uncertainty and concerns about persistent inflation
• Treasury yields rose sharply in response, causing the Bloomberg U.S. Aggregate Bond index to fall 1.2% for the week
• Services inflation remains elevated at 4.3% year-over-year based on the "supercore" measure
• Job market remains resilient which could lead to ongoing wage pressures and services inflation
• Markets now see just a 60% chance of a June rate cut, down from near 100% previously