Wall Street was left reeling on Wednesday as the latest US inflation figures defied expectations, holding firm despite mounting pressures from trade tariffs. The Consumer Price Index (CPI) data, a key measure of inflation, showed no significant uptick, confounding economists who had anticipated a sharper rise.
Markets Left Guessing
Analysts had predicted that the escalating trade war between the US and China would drive prices higher, but the latest CPI report suggests resilience in the economy. The Federal Reserve now faces renewed scrutiny over its next moves, with investors questioning whether further interest rate cuts will be necessary.
Why This Matters
The unexpected stability in inflation could signal that the US economy is more robust than previously thought. However, some experts warn that the delayed effects of tariffs may still materialise, potentially disrupting markets later in the year.
What’s Next?
With Wall Street caught off guard, traders are bracing for volatility as they reassess their positions. The Federal Reserve’s upcoming policy meeting will be closely watched for any hints of a shift in strategy.
