Inflation Data Erases Hopes for Fed Interest Rate Cuts
April inflation data pushed 30-year Treasury yields above 5 percent while markets abandoned rate cut hopes. Trump arrives in Beijing for a trade summit.
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The United States faces a potential interest rate hike as the Fed futures market now prices an 80% probability that the next move will be a rate increase as soon as next April, following consumer price inflation that rose to 3.8% in April. Fed futures markets have eliminated all expectations for rate cuts this year. Headline inflation is projected to exceed 4% this month, double the Federal Reserve's target.
