Soft US CPI data initially boosts market sentiment, but optimism fades as trade war escalates

From Investing.com: 2025-03-13 07:09:00

The US inflation rate slowed more than expected in February, easing concerns about rising prices and boosting bets that the Fed will cut rates later in the year. The softer CPI report provided some relief to markets, but optimism was short-lived as Canada and the EU imposed counter-tariffs on the US, escalating trade tensions. Despite the CPI data, Fed rate cut expectations remain largely unchanged due to trade uncertainties. Investors are nervous about the impact of protectionism on the economy, with the risk of a recession still looming. Market conditions are expected to be choppy, with the government facing a possible shutdown. The dollar made a modest recovery, while the yen gained strength amid trade concerns. Gold prices are approaching record highs as investors seek safe havens amidst policy uncertainties.



Read more at Investing.com: Relief Rally From Soft US CPI Falters as Trade War Escalates