U.S. inflation remains stubborn, traders continue to bet on a July rate cut

On March 28th, data showed that the Federal Reserve's preferred measure of inflation continued to rise at a stubborn rate in February, while the lower than expected monthly rate of personal spending suggested that household demand was weaker than expected, indicating that consumers are becoming more cautious amid growing concerns about their financial situation. After the data was released, stock index futures fell further and Treasury yields remained low. < b > Swap traders continue to expect two 25 basis point rate cuts this year, with the first rate cut expected in July. Today's report suggests that inflation is stubborn and intractable, while Trump's planned tariffs have the potential to further exacerbate price pressures. His aggressive trade policies have dented business and consumer confidence, and signs of mounting financial stress on households have raised fears that the economy could slip into stagflation or even recession. < br > < img src = "https://flash-scdn.jin10.com/040b001d-282a-4973-920a-b107b41d1117.png" referrerpolicy = "no-referrer" >