UBS says the Federal Reserve remains on track to cut rates (shrugs off higher CPI data) ...Middle East

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UBS says the Federal Reserve remains on track to cut rates (shrugs off higher CPI data)
From a UBS note on thier outlook for the Federal Open Market Committee (FOMC). UBS notes that last week's hotter-than-expected US inflation print has markets rethinking Fed rate cut bets:Core CPI came in at 0.3% m/m for the second straight month, topping estimates and pushing the y/y rate to 3.3%.The data, coupled with recent strong jobs numbers, has traders slashing odds of aggressive easing. CME FedWatch now shows zero chance of a 50bp cut, down from 35% last week. Odds of no cut have jumped to 15% from zilch.But, say the analysts, don't throw in the towel on 2024 cuts just yet. Overall inflation trends remain downward despite monthly noise. Headline CPI eased to 2.4%, lowest since 2021. S

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