CPI data shows March, May rate cuts are ‘unlikely’: Strategist

After December's hotter-than-expected CPI print, HSBC's Chief Multi-Asset Strategist Max Kettner joins Yahoo Finance Live to analyze whether the data changes the Federal Reserve's trajectory towards rate cuts this year. While the inflation reading may not outright "change the calculus of the Fed" itself, Kettner warns other inflation gauges have started "bottoming out and really starting to pick up again" over the last 2-3 months. The reversal he says is "not good news for the Fed" in its bid to fight inflation. Some investors have started pricing in Fed easing beginning as early as March, but Kettner argues cuts in the near future now look very "unlikely" given re-accelerating indicators. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith