Hot CPI Report Puts a Fed Rate Hike Squarely Back on the Table

Hot CPI report revives possibility of Fed rate hike after period of easing expectations.

· Source: investing.com

Summary

A stronger-than-expected CPI reading has shifted market expectations back toward the possibility of a Fed rate hike, reversing recent momentum in easing bets. This repricing affects risk assets across equities, bonds, and currencies, with traders reassessing positioning ahead of the next FOMC decision. The data undercuts the dovish narrative that has dominated since late 2024.

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