The stock market (^DJI, ^IXIC, ^GSPC) on Tuesday suffered some selling as January inflation data was higher than expected. After one of the worst days for markets since March 2023, there was some recovery in Wednesday's trading as stocks rebounded. All eyes are on the Fed, with Wall Street speculating whether this economic printing will fuel sentiment for officials to push for further rate cuts through 2024.
David Sekera, Morningstar's chief U.S. market strategist, joins Yahoo Finance to discuss current market conditions and how the Fed will react to recent inflation data.
We don't think the situation is as bad as the headlines suggest, so when our U.S. economics team started tackling this issue in earnest and looking at some of the weightings and methodological differences between CPI and PCE. We still continue to believe that this year's PCE will be lower. The average is he's going to be 1.9%, and in fact he's going to drop even further heading into 2025,'' Sekala puts his CPI print into context. “So we're not worried about inflation. Our U.S. economic team is actually still looking for the first rate cut here in May, so that's a little bit out of consensus at the moment. I understand…”
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Editor's note: This article was written by Nicholas Jacobino
