U.S. Core CPI Below Expectations Boosts Markets and Raises Rate

U.S. inflation data released yesterday revealed that the core CPI was slightly below expectations, increasing the likelihood of a rate cut at the Fed’s March meeting. This progress in curbing inflation sparked a rally in stock markets, especially in the U.S., where the S&P 500 closed nearly 2% higher. At the same time, the dollar weakened against most currencies. According to the CME FedWatch tool, the probability of a March rate cut now stands at 28%.