Posted 3/14/2024, 8:09:33 PM
Rate Cut Expectations Moderated Despite Persistent Inflation Worries
- Despite sticky inflation data, markets still expect Fed to start rate cuts in June
- Lackluster economic data has forced investors to ratchet down expectations for rate cuts
- Concerns that inflation could come in hotter than expected explain muted reactions to CPI and PPI
- Stabilization in earnings estimates suggests strong economy, leading some to doubt Fed will cut
- Recession concerns have faded as GDP forecasts have increased quickly in recent weeks