Investors who plowed into shares of the largest US banks in recent months, hoping that slow Federal Reserve rate cuts would keep goosing profits, are getting a reality check.
The Federal Reserve’s preferred inflation gauge is set to come in softer than another report this week on consumer prices that rocked financial markets.
State Street Global Advisors is bucking the recent hawkish shift in market consensus to bet that the Federal Reserve will cut interest rates by 50 basis points as soon as June.
JPMorgan Chase CEO Jamie Dimon maintained his view that inflation could be more persistent than markets expect, prompting interest rates to stay higher.