The consistent slide in inflation in 2023 had most, including the U.S. Federal Reserve, coming into 2024 expecting appreciably easier monetary policy throughout the year. Instead, inflation has actual risen a bit thus far this year. Along with an economy that continues to grow, it’s put the kibosh on the thought of any imminent central bank rate cuts. Coming into Wednesday’s CPI report, the odds of a summer rate cut by the Fed were low and traders had priced in just a 50% chance of move in September, according to the CME FedWatch Tool.
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