The US inflation outlook is shifting as Federal Reserve officials adopt a more cautious tone ahead of the latest CPI report, hinting at slower interest rate hikes and sparking optimism in both bond and equity markets.
The Federal Reserve rates are set to stay steady as inflation cools more than expected, bringing relief to markets and boosting investor confidence in a more stable borrowing environment. This pause in rate hikes signals a calmer economic outlook, encouraging growth and optimism across equities.
US inflation expectations are shifting as investors grapple with mixed CPI signals, leading to a cautious recalibration of future rate hike forecasts and market volatility.