May 13 What matters in U.S. and global markets today By Mike Dolan, Editor-at-Large, Finance and Markets Oil prices remain elevated, inflation is climbing and bond markets are feeling the heat as the Iran war stalemate continues.
Higher-than-forecast U.S. consumer price inflation of 3.8% in April underlined the simmering problem on Tuesday, with headline inflation now expected to top 4% this month – double the Fed’s target
Even the “trimmed mean” cut of inflation, favored by incoming Fed Chair Kevin Warsh, showed its biggest monthly rise in more than two years. I’ll get into that and more below. But first, check out my latest column on the many factors placing bellwether government borrowing markets under strain.
And listen to the latest episode of the Morning Bid daily podcast. Subscribe to hear Reuters journalists discuss the biggest news in markets and finance seven days a week. FED ALERT The hot inflation prints have pushed Fed futures markets to wipe away any chance of a rate cut this year, and there’s now an 80% chance that the next move will be a hike as soon as next April.