Investing.com Staff
Vital Knowledge analysts' latest thoughts on the Fed and in the aftermath of today's in-line CPI report.
"Like the jobs report on Friday, this CPI release isn’t the best-case scenario, but there are enough dovish pieces that when coupled with what’s happening with banks should give Powell cover to dramatically shift the policy message on 3/22. It’s still hard to say whether they do 0 or 25bp on 3/22 (odds favor 25bp at this point), but regardless the cycle ceiling is just about in place (4.75-5%), and the QT process will likely be at least slowed (if not stopped completely). We do think Powell will push back a bit on the aggressive rate cuts priced into the market, warning investors that data thus far doesn’t justify such a move. "