🇺🇸🪙 CPI data is boosting market expectations for Federal Reserve rate cuts, but Fed officials are pushing back. December CPI showed continued cooling inflation, with core CPI at its lowest level since March 2021. Markets reacted quickly, raising the odds of an April rate cut to around 42%, though June remains the base case. However, Fed officials warn inflation is not yet stable and cutting too early carries risks. Minneapolis Fed President Kashkari stressed that policy must remain data-driven and independent of political pressure, noting current data does not justify cuts. Philadelphia Fed President Harker echoed caution, suggesting cuts later this year only if inflation continues easing. 🇺🇸🪙

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