2024-02-15 17:27:26 ET
Summary
- The CPI didn't decline as much as expected, causing the market to drop.
- Fears spread that the Fed won't cut rates for longer and might even raise rates to combat resurgent inflation.
- The recent bump in the CPI is likely transitory, and more significant declines in CPI inflation are expected.
- Also, there are other inflation gauges, like the Fed's preferred core-PCE, which is trending lower just fine.
- Expectations may be too hawkish now, and the Fed will likely start cutting rates at the May or June meeting.
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For further details see:
The Inflation Report Doesn't Really Change Anything