Inflation Jumps in March, Hardening Case for Further Fed Rate Hikes
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CPI and core CPI came in higher than expected in March, putting an end to expectations of rate cuts this year.
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Inflation increased at a faster pace in March, with core CPI rising more sharply than in previous months.
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Higher anticipated inflation in coming months likely to boost 2-year yields and strengthen the dollar.
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Financial conditions need to tighten to correct the market-driven easing that stimulated this inflation surge.
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Expect multiple contraction in stocks as credit spreads widen, possibly pushing S&P 500 back down near 4,450-4,500 level.