Traders Betting Fed Peak Is Here Curb Pivot Wagers: Markets Wrap
- US consumer prices pick up in bumpy path down for inflation
- Wall Street refrains from big moves before Powell, ‘dot plot’
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Wall Street saw mild moves in the run-up to the Federal Reserve decision, with the latest inflation data reinforcing speculation policymakers will be in no rush to claim victory just yet.
While markets continued to bet officials will be on hold Wednesday, the recent economic figures cast doubt on the aggressive pricing of a dovish pivot. Traders have slightly trimmed their wagers on rate cuts in 2024, with the first one still projected to happen in May. The data also spurred speculation that Jerome Powell will throw cold water on the Fed-easing buoyancy.