2024-02-16 20:35:00 ET
Summary
- The January Consumer Price Index and Producer Price Index inflation reports both came in hotter than expected - underscoring the challenge of reaching the Fed's 2% inflation target.
- Policymakers have repeatedly noted the need for additional evidence of sustained disinflation before they will cut rates.
- As a result, the market's expectations are beginning to fall in line, with their anticipation of numerous rate cuts adjusting to a more moderate expectation of three to four cuts starting around mid-year.
By Seema Shah, Chief Global Strategist
The January Consumer Price Index ((CPI)) and Producer Price Index ((PPI)) inflation reports both came in hotter than expected - underscoring the challenge of reaching the Fed's 2% inflation target. ...
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For further details see:
Stalling Disinflation: Delivering A Heavy Blow To Market Rate Expectations