Market Caution Grows Amid Inflation and Rate Hike Concerns

World stocks retreated from 2-1/2 week highs due to expectations of further rate hikes from central banks and weak earnings growth. British inflation data suggested that central banks may prioritize price stability over supporting economic growth. Federal Reserve Bank of New York President John Williams noted that inflation is still problematic and the US central bank will act to lower it. A Reuters poll of economists showed the Fed is likely to deliver a final 25-basis-point rate increase in May and then hold rates steady for the rest of the year.