December US CPI – Barclays analysts didn't say "I told you so" but they should have

<p>Barclays said prior to the US inflation data released on Thursday that:</p><ul><li><a href="https://www.forexlive.com/centralbank/barclays-view-market-expectations-for-fed-rate-cuts-as-too-aggressive-20240111/" target="_blank" rel="follow">market expectations for Fed rate cuts are too aggressive</a></li></ul><p>The upside surprise in inflation in the data has eaten into expectation a little, but only a little. </p><p>Barclays:</p><ul><li>Markets remain too aggressive around interest rate cuts expectations</li><li>the December CPI may not be enough to change this perception</li><li>(but) it could be a first step in allowing markets to align with the Fed’s narrative that cuts will come but not just yet</li></ul><p>Incoming data and speeches will give us more information, but I'm sticking a fork in thoughts of a March cut, nope. </p><ul><li><a href="https://www.forexlive.com/news/eyes-on-the-fomc-speakers-schedule-as-we-count-down-to-the-blackout-20240111/" target="_self">Eyes on the FOMC speakers' schedule as we count down to the blackout</a></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.