The final leg of the inflation fight is proving to be difficult for the Fed.
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscriberegime — the last in the world. The Bank of Japan on Tuesday hiked interest rates for the first time in 17 years..
"The Fed's inflation target is 2%, and the bottom line of the inflation discussion is that inflation has started to move sideways at 3%, and this is a problem for the Fed," said Torsten Slok, chief economist at Apollo Global Management in a note. The Federal Open Market Committee will likely use this week's policy meeting to debate on whether inflation continues to cool or if progress has stalled.
While the central bank is widely expected to keep rates unchanged, investors will draw careful scrutiny for any clues about the timing of future rate cuts.indicated the biggest risk is that the Fed cuts too late, while 46% worry the Fed will cut too early.Despite the latest run of hot inflation data, market watchers still expect the Fed to stick to three rate cuts.
"We are sticking with three this year, starting in June. But it would only take two participants to change their views to have the median fall to two cuts from three," Joe Kalish, chief global macro strategist of Ned Davis Research, said in a note.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
CNBC Daily Open: A mixed picture on U.S. jobs growthU.S. jobs growth continues to boom but there are also clear signs the labor market is cooling.
Read more »
CNBC Daily Open: A mixed picture on U.S. jobs growthU.S. jobs growth continues to boom but there are also clear signs the labor market is cooling.
Read more »
CNBC Daily Open: Markets brace for key U.S. inflation gaugeWall Street is bracing for a key inflation gauge that will once again test the markets.
Read more »
CNBC Daily Open: Stubborn inflation is a problem for the FedOnce again, inflation came in hot for a second straight month.
Read more »
CNBC Daily Open: Sticky inflation muddies water for FedOnce again, inflation came in hot for a second straight month.
Read more »
CNBC Daily Open: U.S. retail sales in sharp focusAmerican consumers started the year on shaky footing but a bounce back could be in sight.
Read more »