Institution: CPI is expected to be lower than anticipated, allowing the Fed to resume rate cuts in June
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Institution: CPI is expected to be lower than anticipated, allowing the Fed to resume rate cuts in June
According to Jinshi Data, analysis firm Tradingkey stated that the market consensus forecasts overall CPI to rise 2.4% year-on-year in April, unchanged from March. However, among the four major components of CPI, only food shows an upward trend, yet it accounts for just 13.7% of total CPI. Therefore, we believe inflation in April will be below market consensus. This could increase the likelihood of the Fed restarting its rate-cutting cycle in June. As such, we expect U.S. equities to rise after the data release, while the dollar index and U.S. Treasury yields fall.
Navigating Web3 tides with focused insightsTechFlow news, May 13 — According to Jinshi Data, analysis firm Tradingkey stated that the market consensus forecasts overall CPI growth of 2.4% year-on-year in April, unchanged from March. However, among the four major components of CPI, only food shows an upward trend, accounting for just 13.7% of total CPI. Therefore, we believe inflation in April will be below market consensus. This could increase the likelihood of the Fed restarting its rate-cutting cycle in June. As such, we expect U.S. equities to rise after the data release, while the dollar index and U.S. Treasury yields will fall.
