Markets rethink the likely date that Fed will start cutting rates

In the US, inflation data was hotter than anticipated at 3.1% for January (2.9% forecasted). This caused a rethink of when the Fed might begin rate cuts. Stocks sold-off following the data but recovered, helped by UK CPI data which unexpectedly showed annual inflation held steady at 4% in January. Even with weaker-than-anticipated US retail sales data on Thursday, the majority of investors are now looking at a date beyond May for the first cut. With the US economy remaining strong some Fed officials have commented that there is no rush to lower rates just yet.

Full report

Disclaimer: ‘Where the business has expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy.

This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’