Analysts See Less Likelihood of June Rate Cut After Hot Inflation Data

• Analysts at Citi, UBS, and Goldman Sachs don't expect the Fed to cut rates in June following the hot CPI data and FOMC minutes showing officials need more confidence inflation is moving to 2% target.

• UBS removed June rate cut from its base case and now sees first cut in September with 50 basis points of cuts by year-end.

• Citi notes majority of Fed officials think appropriate to slow balance sheet reduction "fairly soon".

• Goldman pushed back forecast of first rate cut from June to July, expecting quarterly cuts after that.

• Analysts feel recent firmer inflation prints need to be balanced by softer prints in subsequent months for Fed to cut rates.