"Market Watch: Preparing for a Prolonged Inflation Shock in 2024"

Wall Street and the Federal Reserve are on guard as the annual update to the consumer-price index (CPI) approaches, following last year's unexpected inflation shock. The previous update revealed that inflation had not slowed as much as previously believed, prompting the Fed to raise interest rates in an effort to curb inflation. Economists and officials are wary of potential revisions and hope for a more favorable trajectory, with expectations that inflation may have slowed slightly faster than previously reported. The upcoming CPI update could influence the Fed's decision to cut U.S. interest rates by early or late spring, providing relief to home buyers, car purchasers, and other borrowers.