Posted 2/14/2024, 1:23:32 PM
Fed Rate-Cut Hopes Fade as Hot Inflation Persists
- Hotter-than-expected inflation report stokes concerns that a "soft landing" for the economy is unlikely
- Inflation remaining high, with shelter and services costs rising more than forecast
- Markets reacted negatively, with stocks falling sharply and investors doubting imminent rate cuts
- Futures market now pricing in only 3-4 rate cuts this year, down from 6-7 expected earlier
- Economist notes predictions of numerous 2023 rate cuts never made sense amid high inflation
