Hot Inflation Data Reinforces Fed's Patience on Rate Cuts

Hotter-than-expected inflation reports reinforce Fed's cautious stance on rate cuts this year. PPI and CPI both rose more than forecasts in January.

Fed officials have been signaling that rate cuts will likely happen later than markets expect - comments from Bostic, Daly, Barkin, Collins, and Mester.

Daly said recent inflation reports haven't shaken her confidence that prices will gradually decline to 2% target.

Bostic said inflation pressures are broader than he would like and he's "not yet comfortable that inflation is inexorably declining."

Bostic predicted rate cuts could begin in the "summertime."