Is April CPI sending signals to markets about any rate cuts?
The Consumer Price Index (CPI) data came out Wednesday morning, with the inflation reading coming in lower than expected for the month of April. Portfolio Wealth Advisors President and CIO Lee Munson joins Wealth! to provide his insights on the market outlook amid this print that points to cooling inflation. Munson views the CPI print as positive for markets (^DJI, ^IXIC, ^GSPC), stating that "it suggests we might get some [interest rate] cuts" from the Federal Reserve. However, he notes that rate cuts are not expected to materialize until after the election, describing them as "delayed, it's not completely off the table." If the Fed were to cut rates, Munson expects a broadening out in the market. He anticipates this move to extend beyond just large growth stocks with massive revenues, saying he expects to see "a very different dynamic" than what occurred in markets pre-COVID. Regarding cooling inflation, Munson maintains that the labor market and wage growth continue to be an issue. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Angel Smith
