-
The latest inflation data has bolstered the case for looser monetary policy.
-
Investors cheered a soft May inflation report, which could pave the way for Fed easing this year.
-
Rate cuts in September are “overwhelmingly likely,” one economist said.
Wall Street is feeling a lot more upbeat on the path of interest rates this year.
On Wednesday, investors cheered a positive report on the consumer price index for May. Consumer prices fell below economists’ expectations for the second month in a row.
Inflation was flat last month and up 3.3% year over year, the Bureau of Labor Statistics reported, a data point that could put the Federal Reserve back on track to ease its policy later this year after a series of discouraging inflation reports in the first quarter.
Three rate cuts by the end of 2024 are back on the table, with investors seeing a 72% chance the Fed could…
