Analyst: Fed May Pause Rate Cuts, Potentially Resume Hikes Amid Inflation Concerns

In Brief:

Stronger-than-expected CPI data may push the Federal Reserve to halt interest rate cuts for 2024.

If inflation rises further, the Fed could reverse course and raise rates instead.

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According to Regan Capital analyst Skyler Weinand, the Federal Reserve may hold off on cutting rates this year following January’s hotter-than-expected CPI report. Weinand suggests that inflationary pressures and uncertainty around Trump’s fiscal policies could force the Fed to adopt a wait-and-see approach.

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Should consumer prices or inflation expectations rise, Weinand warns that the Fed’s next move might be an interest rate hike rather than a cut, adding further uncertainty to financial markets.