May Rate Hike Likely as Economic Data Points to Inflation and Job Growth
TL;DR Summary
The U.S. stock market is closely watching the March CPI report, which is expected to show a 5.2% rise from a year earlier, slowing from a 6% year-over-year rise in the previous month. The report could be one of the last key data points before the Federal Reserve's next interest-rate move. If the CPI meets expectations, the Fed is likely to raise rates by about 25 basis points in May. The recent rally in megacap and growth stocks may be "overdone and must be corrected" if the economic data continue to support another rate hike in May and no rate cuts by the end of 2023.
- Why March’s CPI report could upset the stock market, seal the deal on the next rate hike MarketWatch
- Fed expected to raise rates by 50 basis-points in May meeting amid oncoming economic data Yahoo Finance
- Fed Swaps See About 80% Chance of a Quarter-Point May Rate Hike Bloomberg
- This Week’s CPI Report Could Seal The Deal On The Next Big Rate Hike Monster Stock Market Commentary
- Jobs report raises probability of 25 basis point hike in May, says New Edge Wealth CIO CNBC Television
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