CPI came in relatively hot for March. Month to month it increased 0.4%. Shelter and gasoline contributed over half the increase.
Though even core CPI (excluding food and energy) rose 0.4%.
The market is now expecting rate cuts to be postponed till July or September (originally the market was expecting June rate cuts).
Note the Fed tends to focus more on PCE, not CPI. And core specifically. Core PCE is lower. But CPI and PCE tend to track closely with each other.
Note the Fed tends to focus more on PCE, not CPI. And core specifically. Core PCE is lower. But CPI and PCE tend to track closely with each other.