Probability to cut interest rate in June-2024 is getting reduced as Feb-2024 All items inflation index in USA increased 3.2 percent.

Probability to cut interest rate in June-2024 is getting reduced as Feb-2024 All items inflation index in USA increased 3.2 percent.

The all items less food and energy inflation index in USA rose 3.8 percent over the last 12 months.

FED expectation is to bring down inflation to below 2%.

As inflation is not getting cool off, the probability for FED to cut rate in June-2024 is just 50%.

10 year bond is soaring and currently trading at 4.29% as probability to cut interest rate in June-2024 is getting reduced.