WS #15899
US inflation data has proven stickier than anticipated, with the unrounded core CPI coming in at 0.335% and Midwest inflation hitting 3.7%. Federal Reserve Governor Goolsbee described the data as 'discouraging,' emphasizing that service inflation remains a concern and that the economy has 'work to do' on the inflation side. This has dampened expectations for imminent rate cuts, putting a floor under recent rate rallies and pressuring high-multiple growth stocks that are sensitive to higher-for-longer interest rates.
Inflation and Fed Policy
US inflation data has proven stickier than anticipated, with the unrounded core CPI coming in at 0.335% and Midwest inflation hitting 3.7%. Federal Reserve Governor Goolsbee described the data as 'discouraging,' emphasizing that service inflation remains a concern and that the economy has 'work to do' on the inflation side. This has dampened expectations for imminent rate cuts, putting a floor under recent rate rallies and pressuring high-multiple growth stocks that are sensitive to higher-for-longer interest rates.