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US inflation edges up in March reducing market expectations for rate cuts this year

Updated: Apr 12

US CPI data showed a 3.5% increase in consumer prices in March. The print came higher than the expected 3.4% and caused a market wide repricing of rate cut expectations.

Futures traders begun the year pricing in 6 rate cuts by the FED. Expectations were reduced to 3 rate cuts after February's hot CPI print. Currently the market is expecting the rate cut cycle to begin after the US election in November.

President Joe Biden mentioned after the CPI announcement that he still believed the Fed would cut rates this year, but said the latest date released might delay the timing by a month or two.


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