April CPI came in hot, rising to 3.8% the highest level since May 2023. Core CPI also moved higher to 2.8%, beating expectations of 2.7%. With oil prices surging, inflation is starting to look uncomfortable again. Now the market is pricing in higher odds of Fed rate hikes.
https://www.bls.gov/news.release/archives/cpi_05122026.htm?utm_source=chatgpt.com
Posted by AmanCMN
1 Comment
3.8% CPI is not what the Fed wanted to see. The rate cut narrative just got a lot more complicated. Markets are going to be repricing pretty aggressively until there’s more clarity.