US Near Future Rate Cut off the Table; Probably not even Once for this year. Canada May have to Follow



CPI report for March: Dow futures fall 450 points after hotter-than-expected key inflation data​

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1 min ago

Rent growth returns to prepandemic levels, private data show

By Aarthi Swaminathan
Shelter inflation has been pushing the CPI higher over the last few months. And industry data is indicating that rent growth is slowly inching back up.
Rents rose 0.6% in March from the previous month, according to Zillow, to a median price of $1,983. The climb was dubbed to be “subtle” but tracks closely with the prepandemic seasonal average of 0.7%. Single-family and apartment rents are up across the nation.
Rents are up in all but two metros out of 50: Only Austin and San Antonio homes saw a drop in rents in March, Zillow said.
Redfin also reported on Wednesday that median asking rents were up 0.8% in March, which was the third consecutive increase. During the height of rent growth in 2022, prices went up by as much as 17.7% year-over-year, the company noted.

4 min ago

Interest-rate cuts are off the table for the foreseeable future: Regan Capital strategist

By Isabel Wang
Wednesday's hotter-than-expected CPI report confirms that inflation has re-accelerated, forcing some to believe that the Federal Reserve's interest-rate cuts are off the table in the foreseeable future.
"Strong employment, higher commodity prices and persistent inflation are arguing for the opposite — a rate hike — until inflation gets down near 2% and asset prices cool off," said Skyler Weinand, chief investment officer at Regan Capital. "It’s becoming more and more difficult to argue for rate cuts."
While recent comments from Fed officials have oscillated between doves and hawks, Weinand and his team said that policy makers might be getting nervous about inflation accelerating. The central bankers will look to tame it through "a prolonged stasis in rates" and perhaps a rate hike in the not-too-distant future, Weinand said in emailed comments on Wednesday morning.

6 min ago

Fed-funds-futures traders take June rate cut off table

By Christine Idzelis
Traders in the federal-funds-futures market no longer expect the Federal Reserve will start lowering interest rates in June, after the latest inflation reading largely wiped out those bets.
Fed-funds futures show a 76.8% probability that the Fed will keep its benchmark rate at its current target range of 5.25% to 5.5%, according to the CME FedWatch Tool, at last check.
Traders are assessing a hotter-than-forecast inflation report released by the U.S. Bureau of Labor Statistics at 8:30 a.m. Eastern Time on Wednesday. Before the report, the CME FedWatch Tool indicated a more than 50% chance that the Fed could start cutting rates in June.
Fed-funds futures now show a 54.6% probability that the central bank might decide in July to hold its benchmark rate at the current range, according to the CME FedWatch Tool, at last check.

10 min ago

'Door slamming on a June rate cut'...

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