Thoughts on the latest CPI numbers and potential Fed reaction

The latest CPI print came in a bit hotter than some were expecting, particularly on the services side, which immediately got me thinking about the Fed's rhetoric moving forward. It feels like the market's been trying to price in an earlier rate cut this year, but with inflation showing this kind of stickiness, Chair Powell might be forced to maintain a more hawkish tone at the next meeting, or at least push back on the aggressive cutting expectations.

I'm curious how others are viewing this in terms of sector rotation or bond positioning. For my part, I'm watching how the longer end of the curve reacts next week and re-evaluating some of the more rate-sensitive names on my watchlist. Might be time to dial back on some of the growth plays if higher for longer becomes the firm narrative again, even if it's just for another quarter.