(Bloomberg) — Wall Street saw a volatile session, with stocks and bonds whipsawing after hotter-than-anticipated inflation data tempered bets on a Federal Reserve rate cut in March.
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All around trading desks, the prevailing view is that the consumer price index wasn’t great, but it didn’t move the needle on expectations for the Fed’s course. In other words, investors are mostly convinced officials are done hiking and will ease policy in 2024 — even if that happens a bit later than markets are pricing.
“The so-called ‘last mile’ requires more time to reach the final goal,” said Quincy Krosby at LPL Financial. “Today’s CPI report suggests that the Fed’s initial rate cut may be later than the market is hoping for.”
The S&P 500 swung between gains and losses. US 10-year yields hovered near 4%. Fed swaps priced in less monetary easing in 2024. Bitcoin pared gains after hitting $49,000, with…
