CPI Shows Inflation Slowing, Supporting Potential Fed Rate Cut While Raising Questions on Timing

CPI report shows inflation is on a downward trajectory, though still above the Fed's 2% target. This supports the notion of a June rate cut from the Fed.

Bringing down inflation is a "process" that requires patience, but the print demonstrates the Fed is making progress towards its goal.

If the Fed cuts rates prematurely, they risk unwinding progress made on inflation. Focus should shift from inflation to economic resilience.

As expectations for a soft landing grow, a short, shallow recession might actually be "preferable" for investors over no rate cuts.

Housing and gas costs accounted for 60% of the monthly CPI increase, but the Fed will likely look past shelter costs to other inflation measures in determining policy.