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  • Writer's pictureRealFacts Editorial Team

April CPI Report of Critical Importance


CPI

The upcoming CPI report has a lot of investors on edge, due to the current rate cut and inflation situation, this report is of critical importance. Inflation data from recent months has not been promising for the possibility of rate cuts. BeiChen Lin of Russell Investments wrote, “We’ve now had three consecutive months of mildly upsetting inflation setbacks. After the softer-than-expected April labor-market data, market participants are yearning for April inflation numbers to also cooperate.” Many analysts are predicting that over the remaining course of 2024 inflation will settle down, but some still believe that another round of inflation will occur. What the market is really hoping to avoid is a large, unexpected increase in inflation for the month, strategists at BMO Capital Markets wrote that poor inflation numbers this month will extend well into the second half of 2024, as it would materially delay the beginning of the Fed’s rate-cutting ambitions. It’s certainly not wasted on us that if the second quarter’s inflation profile mirrors that seen during the first quarter, then the [Federal Open Market Committee] might not be able to cut until 2025.”

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