Higher-than-expected inflation in March helped verify worries that inflation is proving stickier than thought.
helped verify worries that inflation is proving stickier than thought, giving credence to caution from Fed policymakers and finally dashing the market's hopes that the central bank would be approving as many as seven rate cuts this year. All of that leaves the Fed in a holding position and the markets worried about the possibility of no hikes this year., which computes rate-cut probabilities as indicated by futures market pricing, moved dramatically following the CPI release. Traders now see just a slim chance of a cut at the June meeting, which previously had been favored. They have also pushed out the first cut to September, and now expect only two reductions by the end of the year.