Commerzbank's reaction to the US inflation report for March, unveiled early this afternoon, argues against a rate cut by the Fed in June.

Between February and March, US consumer prices rose by 0.4%, both gross and excluding energy and food, i.e. more than expected.

Inflationary pressure remains high in the United States", notes the German bank, which also points out that "once again, service prices in particular have risen, reflecting rising wage costs".

"The data suggest that the Federal Reserve will remain on the sidelines for the time being and postpone the first rate cut beyond the middle of the year, especially as the economy continues to grow strongly", it concludes.

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