Posted 4/10/2024, 12:51:25 PM
Inflation Rises Faster than Expected, Reducing Chances of Near-Term Rate Cuts
- Inflation rose 3.5% in the past year, up from 3.2% in February, clouding hopes for imminent rate cuts
- Housing and energy remained key drivers, together making up over half the monthly increase
- Core inflation without food and energy also rose 0.4% for the third straight month
- Markets sank on the news, with a June rate cut now seen as unlikely
- Fed policymakers want more declining inflation before cutting rates, but prices went the wrong way in January and February
