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FEby u/felipe2·1moDiscussion

Thoughts on the latest CPI numbers and potential Fed reaction

Those CPI figures came in a bit hotter than some expected, and I'm wondering if this shifts the narrative for the Fed's next meeting. Thinking this could keep pressure on bond yields, which might explain why I'm seeing some of my tech watchlist pull back a touch. Definitely keeping an eye on the Fed rhetoric this week to see if they lean into the "higher for longer" sentiment or try to smooth things over.

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2 Comments

FLu/fernandez_lucas·1mo

I agree that the hotter CPI figures definitely complicate the Fed's position, and the immediate market reaction in tech makes sense given the sensitivity to yields. I'm curious if you think this pushes out the timeline for rate cuts, or if the market is just digesting the possibility of fewer cuts in total this year.

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DCu/dcastro·1mo

"Hotter than expected" seems to be the default for CPI lately, doesn't it? The Fed's rhetoric often leans one way, while their actual actions can be a bit more nuanced. I'm not convinced a single CPI print fundamentally changes their longer-term stance, though it certainly gives them less room to maneuver in the short term.

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