CPI, Fed, and the odds on rate cuts
The $CPI print today, while minor, still keeps the Fed on a tightrope. Polymarket odds on a June cut haven't shifted dramatically, but the hawkish undertones from several Fed speakers lately are hard to ignore. I'm watching the next jobs report closely; any upside surprise there could really push out the timeline for meaningful cuts, impacting broader market sentiment and those 'soft landing' bets.
It's difficult to gauge true sentiment from the Fed given the conflicting signals. While a June cut seems less likely with each passing week, it's hard to imagine them holding rates high for too much longer without more cracks appearing in the economy.