Despite stronger than forecast core CPI a Fed June rate cut is still expected

Earlier:

• CIBC: Analyzing the implications of February’s US CPI report for the Fed
• The breadth of US inflation pressure narrowed – RBC

Adding to the responses, this is in brief from Bank of Montreal:

• Despite the stronger-than-expected core-CPI print of +0.4% for February … the interpretation being that there was nothing within the data to dissuade investors from continuing to view June as the most likely departure point for the Fed’s normalization plans.
• … the balance of risks linked to next week’s FOMC meeting. Our baseline assumption remains a balanced (which will be read as dovish) approach to the near-term shift in monetary policy.
• … as next week’s updated SEP approaches, the 2024 fed funds projection is the biggest wildcard.

This article was written by Eamonn Sheridan at www.forexlive.com.