US Inflation Rate Runs Hot In January, Puts Fed Rate Cut Bets In Jeopardy
Portfolio Pulse from Piero Cingari
The US inflation rate for January 2024 was reported at 3.1%, higher than the expected 2.9%, with both overall and core CPI rates exceeding forecasts. This has impacted market expectations, reducing the likelihood of Federal Reserve rate cuts, as evidenced by the rise in the U.S. dollar index and the decline in U.S. equity futures.
February 13, 2024 | 1:39 pm
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The Invesco DB USD Index Bullish Fund ETF (UUP) saw a sharp rise following the higher-than-expected inflation report for January 2024.
The unexpected increase in the inflation rate typically leads to a stronger dollar as it reduces the likelihood of Federal Reserve rate cuts, directly benefiting UUP, which tracks the U.S. dollar index.
CONFIDENCE 95
IMPORTANCE 85
RELEVANCE 90