The latest US February CPI report revealed that while inflation was not as severe as feared, it remains “sticky,” posing challenges for the Federal Reserve. The core inflation rate was 3.1%, with ongoing concerns about services inflation. Despite a slight improvement, the Fed is unlikely to cut rates soon, given the persistent inflationary pressures. The bond market’s reaction was muted, and equity markets showed a cautious relief. The broader economic outlook remains uncertain, with potential recession risks heightened under President Trump’s administration, which faces limited fiscal and monetary policy flexibility to address these challenges.

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Stephen Miller

Stephen Miller is GSFM’s market strategist. His expertise in international economic and policy analysis, as well as domestic and global economic and financial market developments, has resulted in him becoming a regular commentator on central banks, rates and inflation.

Information provided is general information and is for educational purposes only, and does not include, or constitute as, financial product advice.