...and the market is very unhappy about it.
Olu Sonola, head of US economic research for Fitch Ratings:
“The hot inflation print is the real story in this report. If growth continues to slowly decelerate, but inflation strongly takes off again in the wrong direction, the expectation of a Fed interest rate cut in 2024 is starting to look increasingly more out of reach.”
Rate-cut expectations have dropped back near cycle lows (for 2024 and 2025)...
Source: Bloomberg
Treasury yields are soaring, led by the short-end...
Source: Bloomberg
With 2Y back above 5.00% (will it hold)...
Source: Bloomberg
Stocks are getting spanked...
Commodities are less anxious with oil sliding a little, gold rallying modestly even with the dollar rising...
Source: Bloomberg
Crypto is heading lower...
Source: Bloomberg
What time is the Biden press conference to confirm there will be rate-cuts this year?