Institutions: Inflation data doesn't seem to leave room for Fed rate cuts
On 13 March, Steven Blitz, chief US economist at TS Lombard, said that the inflation data did not signal a rate cut to the Federal Reserve. Although the CPI fell from 3 per cent to 2.8 per cent in February, ‘there are enough anomalies in the data to cast doubt on any attempts to treat it as a trend.’
Blitz said commodity prices excluding food and energy rose at a seasonally adjusted annual rate of 2.7 per cent in February, an improvement from 3.5 per cent in January, but remained volatile. He said this was ‘the category where the impact of tariffs was most pronounced in the first round’. Eventually, employment continues to rise and inflation will follow.
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