Svmuu News According to Hassett, Director of the White House National Economic Council, the Federal Reserve still has room to cut interest rates, and this outlook will be very solid. He also stated that backup plans have been developed to keep the Strait of Hormuz open.
Furthermore, after data showed that gasoline prices rose due to the Iran war and U.S. inflation accelerated in March, bond traders slightly reduced their bets on the Fed cutting rates once this year. Pricing in the interest rate swap market on Friday indicated that the probability of the Fed cutting rates by 25 basis points this year is about one-third, showing little change compared to before the data release. Following the report's release, U.S. Treasuries edged lower, with yields across maturities rising by two to three basis points. Tom di Galoma, Managing Director of Mischler Financial Group, said: "Today's CPI data will not support bond prices, as next month's inflation report will bring more trouble for investors and the Fed." (Jin10)