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March inflation comes in hotter than expected: Dashing hopes for early rate cuts?
The U.S. CPI data for March is higher than expected for the third month. Housing and gasoline prices kept inflation elevated. Overheated pri Show More
The U.S. CPI data for March is higher than expected for the third month. Housing and gasoline prices kept inflation elevated. Overheated price levels combined with good labor market and a lack of evidence of an economic slowdown have greatly cooled market expectations that the Federal Reserve will start cutting interest rates in June. Bond yields surged and U.S. stocks fell.

📣 Wall Street has also lowered its interest rate cut expectations:
● The Goldman Sachs strategist team expects only two interest rate cuts this year, the first in July and the second in November.
● The Barclays economics team expects the Federal Reserve to cut interest rates only once this year in September, by 25 basis points.
● JP Morgan analysts believe that a rate cut in June is out of the question.
● Former US Treasury Secretary Summers believes that there is no need to cut interest rates now.

🎙️ Discussion:
1. Has the interest rate cut in 2024 become a matter of "if", not just "when"?
2. How will this impact your strategies?
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