Everyone – from investors and consumers to authorities and analysts – anticipated inflation relief. Instead, price stresses continued, and, following the confirmed information, the Dow Jones Industrial Average lost almost 500 points when it dropped by 2.4%. CNBC quoted Jason Furman, a Harvard economist, who commented:

Fool me once, shame on you. Fool me twice, shame on me. We’ve now had three months in a row of prints coming in above just about what everyone expected. It’s time to change the way we think about things going forward.

Don’t miss out the latest news, subscribe to LeapRate’s newsletter 

In March 2024, import prices, which is usually a minor indicator, registered the most prominent three-month hike in approximately two years. This, on top of all the other financial yokes and Iran’s attack on Israel, affected markets worldwide, as reflected in the selloffs during the second week of April 2024. According to CNBC, former Wells Fargo strategist and economist Jim Paulsen, said:

You can take your pick. There’s a lot of catalysts. More than anything, this is really down to one thing now, and it’s the Israel-Iran war if that’s going to happen … It just gives you a great sense of instability.

Indications from the US Federal Reserve pointed to interest Rate Cuts, but analysts feel those hopes are no longer on the cards. Instead of six or seven anticipated decreases, experts now predict a possible two during the course of this year.

The post US Inflation Defies Hopes of rate cuts appeared first on LeapRate.