The Consumer Price Index (CPI) data for April fell mostly in line with expectations, sparking further debate about how the Federal Reserve will shape its future monetary policy. In response to the CPI reading, US Equities (^GSPC, ^DJI, ^IXIC) have begun to rise.

Edward Jones Senior Investment Strategist Angelo Kourkafas and Interactive Brokers Senior Economist José Torres join Market Domination to discuss how the recent CPI data will impact the Fed and the broader markets.

Kourkafas believes the economic data will move the Fed to cut rates: "We think 1 to 2 rate cuts are realistic. I think today was the combo of Fed-friendly data. Looking at both the CPI and retail sales that validate the Fed's stance of not considering further rate hikes from here, but signaling patience. Though the market that the number didn't deviate very much from expectations, I think markets are breathing a sigh of relief that disinflation continues."

Torres comments on the strength of the consumer during this cycle: "Consumer erraticness [sic] has been part of this cycle since for the last two and a half years, roughly. So I'm not ready to call the consumer quits just yet. They might come back quite strongly the next month. However, savings are really depleted. Sentiment is down. Consumers are not only concerned over higher prices and lofty interest rates, they're also now fearing their job stability as well. So I do think that there's elevated caution that's warranted this time around."

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Nicholas Jacobino