Scorching US economy throws off market's Fed cut narrative
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Robust US economic data is challenging the expectation of a Federal Reserve rate cut, as evidence of stronger-than-expected growth raises concerns about inflation. The S&P 500 reached a record high in January on hopes of a Fed pivot to cutting rates, but recent data, including a strong jobs report, has diminished expectations of a near-term rate cut. The market had been pricing in six or seven rate cuts, but the probability of a March cut now stands at about 20%. The strong growth is seen as positive for stocks, but fears of an inflationary rebound and higher interest rates remain.

#UsEconomy #FederalReserve #StockMarket #InterestRates

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