Published on 12 Apr 2024 on Zacks via Yahoo Finance
Volatility in the U.S. financial markets continues. This is evident from the rise in the annual Consumer Price Index (CPI) for the month of March, following the trend of the last couple of months. Investors are concerned about the Fed's reactions to higher-than-expected CPI data and a strong labor market. Though the Federal Reserve’s chairman, Jerome Powell, reiterated multiple rates cut this year, the current situation undermines such a possibility in the near future.
The CPI, which is the most accepted gauge for inflation, saw the biggest rise in the past six months. Deviating far from the Federal Reserve’s ambitious target of 2%, inflation for the month of March rose to 3.5% year on year, mostly due to a rise in the cost of gasoline and shelter.