Fed rate cut expectations shift
Markets now anticipate the Fed may delay its first interest rate cut until September due to rising oil prices and Middle East instability.
The shift in expectations comes as February's CPI data is expected to remain steady, influencing the Fed's policy outlook. This suggests inflation may be stickier than initially hoped. Rising oil prices, influenced by Middle East tensions, are a key factor behind these revised expectations. Energy costs feed into broader inflation, complicating the Fed's task. A delayed rate cut could impact borrowing costs for businesses in San Antonio and beyond. This may cool down investment and expansion plans.
