US CPI Heatmap

February’s print will lift further eyebrows at the Federal Reserve, whom are trying to find the evidence they need to be confident enough that inflation is returning to 2% so they can start their rate cutting cycle. It is very unlikely they found that confidence today in the CPI report.
Following the print, markets are now pricing in a 99% chance of a further hold in rates at the March FOMC meeting. The first cut in the Federal Funds Rate is pencilled in by markets for June at present.
There has been a dramatic repricing by markets of their predictions for rate cuts since the start of the year. In January, predictions for a rate cut in March were as high as 76%... $S&P 500 Index(.SPX.US)$ $SPDR S&P 500 ETF(SPY.US)$ $Invesco QQQ Trust(QQQ.US)$