Posted 4/10/2024, 8:03:22 PM
Hotter Than Expected Inflation Data Damps Hopes for Rate Cuts This Year
- CPI inflation data for March comes in hotter than expected, reducing hopes for imminent rate cuts
- Economists now expect only 2 rate cuts this year, down from 6 expected earlier
- Core CPI rose 0.4% month-over-month and 3.8% year-over-year, higher than forecasts
- Markets now see just a 20% chance of a June rate cut, versus 60% odds previously
- Some economists caution against overreacting to monthly data, noting overall disinflationary trend