The market is overestimating the potential for interest rate cuts by the Fed – Commerzbank – Crypto News – Crypto News
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A lot of time still before deciding on size of September rate hike A lot of time still before deciding on size of September rate hike

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The market is overestimating the potential for interest rate cuts by the Fed – Commerzbank – Crypto News

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US inflation is sticky. Economists at Commerzbank say that the Fed can wait for longer before cutting rates.

US inflation pressure rises again

The decline in inflation in the US is stalling. In February, consumer prices rose by a strong 0.4% from the previous month, both overall and excluding energy and food. Prices for services in particular increased, reflecting rising wage costs. The high inflation rate in January was therefore not an outlier. 

The data supports our view that the market is overestimating the potential for interest rate cuts by the Federal Reserve.

 

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