{"id":13483,"date":"2024-04-10T23:30:08","date_gmt":"2024-04-10T18:00:08","guid":{"rendered":"https:\/\/bigbreakingwire.in\/u-s-cpi-surges-exceed-expectations-third-time-in-a-row-implications-for-rate-cuts\/"},"modified":"2024-04-10T23:35:10","modified_gmt":"2024-04-10T18:05:10","slug":"u-s-cpi-surges-exceed-expectations-third-time-in-a-row-implications-for-rate-cuts","status":"publish","type":"post","link":"https:\/\/bigbreakingwire.in\/u-s-cpi-surges-exceed-expectations-third-time-in-a-row-implications-for-rate-cuts\/","title":{"rendered":"U.S. CPI Surges Exceed Expectations Third Time in a Row: Implications for Rate Cuts"},"content":{"rendered":"
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For the third time in a row, the U.S. Consumer Price Index (CPI) has exceeded expectations, propelled by surges in gasoline and energy prices, as well as housing costs. These two indices accounted for more than half of the monthly rise. Consequently, market sentiment now leans towards anticipating approximately 50 basis points of rate cuts in 2024, as indicated by Fed Swaps.<\/p>\n\n\n\n

March U.S. inflation figures indicate a year-over-year increase of 3.5% for the Consumer Price Index (CPI), slightly surpassing expectations of 3.4%. On a monthly basis, CPI rose by 0.4%, exceeding the estimated 0.3%. Core CPI, which excludes volatile food and energy prices, saw a year-over-year uptick of 3.8%, in line with expectations, and a monthly increase of 0.4%, surpassing the anticipated 0.3%.<\/p>\n\n\n\n

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Traders are currently factoring in the likelihood of the initial rate cut occurring in November, shortly following the U.S. Presidential Election. Furthermore, they are now pricing in only two rate cuts, each at 50 basis points, for the year. Previously, the market had priced in three cuts, with the first anticipated in June.<\/p>\n\n\n\n

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If the first rate cut occurs after the U.S. Presidential Election in November, it would mark the lengthiest interval between the last interest rate hike and the initial cut.<\/p>\n\n\n\n

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\ud83d\udea8 Federal Reserve might postpone rate cuts until after the November presidential election, influenced by U.S. politics, according to Santander's Stephen Stanley.

Live Update https:\/\/t.co\/l4hswUWp5t<\/a>#FOMC<\/a> #FED<\/a> $SPY<\/a> $SPX<\/a> $QQQ<\/a> https:\/\/t.co\/k4LJTLFTC2<\/a><\/p>— BigBreakingWire (@BigBreakingWire) February 27, 2024<\/a><\/blockquote>