January’s Consumer Price Index (CPI) and Producer Price Index (PPI) readings both beat expectations, leaving many on Wall Street perplexed. The data has put more focus on the question of when the Federal Reserve will cut interest rates.
Luis Alvarado, Global Fixed Income Strategist at Wells Fargo Investment Institute, joins Yahoo Finance to discuss the latest inflation data and what it means for markets going forward.
Describing what he believes will happen to the market in the short term, Alvarado said, “I expect there to be some kind of slowdown for the next three to four months, pretty much the first half of this year, and then eventually a recovery.” Stated. Powell’s point is that when he took March off the table, it was still too early to factor in the aggressive rate cuts that markets started pricing in in late December, so yeah, they got ahead of themselves. . “They’re making the same mistakes they made in the ’70s in cutting rates too early, perhaps too fast, but the economy is still doing well. So the Fed will be cautious.” I think so.
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor’s note: This article was written by Nicholas Jacobino
