Posted 2/13/2024, 6:59:43 PM
Inflation Jumps in January, Raising Prospect of More Fed Rate Hikes
- CPI report shows inflation accelerated in January, increasing concerns that inflation is not yet under control
- Core inflation metrics like core services less shelter increased sharply on a monthly and annual basis
- Traders are now paring back expectations for Fed rate cuts in 2023-2024; odds of rate hikes may increase if trends continue
- Higher inflation driving up Treasury yields, stronger dollar, tighter financial conditions which could weigh on stocks
- If high inflation persists a few more months, conversation could shift from potential Fed rate cuts back to rate hikes