MarketWatch - More ammo for 'higher for longer' crowd

Traders betting the Federal Reserve will be reluctant to cut rates as fast as markets have priced in got a boost from the data, says Giuseppe Sette, president of AI-based market research firm Toggle AI, in an email.

He writes: "The 'higher for longer' party has received one more bullet in its banderole: with CPI marginally higher than expected (+0.2% for headline, +0.1% for core) it becomes harder for the Fed to say that inflationary pressures have been tamed, especially in the face of a strong job market.

"For the entire history of the Fed, rates have always been kept considerably above inflation in any scenario short of a recession. This CPI print pushes the first rate cut further away, possibly not even in 2024."

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