U.S. Economic and Market Highlights
The Economy
- Annual inflation in the U.S. ticked higher in March and underlying price pressures remained stubbornly strong (CPI +3.5%), raising further questions about how much the Federal Reserve will be able to cut interest rates this year.
- At the end of 2023, investors expected monetary easing as soon as the spring, with a total of five to six rate cuts for the full calendar year of 2024. That forecast now sits at less than three, and investors currently anticipate a less than 50% chance of a rate cut in the U.S. in June.