In the wake of the hotter-than-expected March CPI report, expectations for Federal Reserve rate cuts have started to shift. Deutsche Bank Senior US Economist Brett Ryan joins Yahoo Finance to share his outlook on the central bank’s monetary policy path.
Ryan states that Wednesday’s CPI data has forced the Fed’s anticipated rate cut trajectory to go "out the door." He notes that the "window is somewhat small" for the Fed to gain enough confidence to justify a rate cut as soon as June or July. Given the Fed’s data-dependent approach, Ryan says there is no "clear indication" that inflation is returning to the central bank’s target. As a result, he believes it is "hard to see significant rate cuts this year."
While concerns are rising about the possibility of a rate hike replacing cut expectations, Ryan says, "The probabilities are still very much skewed toward cuts."
#youtube #inflation #stockmarket
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