Stocks, Bonds Gyrate After ‘Not Great’ CPI Report: Markets Wrap
- US inflation accelerates, tempering case for Fed to cut rates
- Fed’s Mester says March is probably too early for a rate cut
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Wall Street saw a volatile session, with stocks and bonds whipsawing after hotter-than-anticipated inflation data tempered bets on a Federal Reserve rate cut in March.
All around trading desks, the prevailing view is that the consumer price index wasn’t great, but it didn’t move the needle on expectations for the Fed’s course. In other words, investors are mostly convinced officials are done hiking and will ease policy in 2024 — even if that happens a bit later than markets are pricing.