Interest rate cut odds dwindle as inflation progress stalls [Video]

A string of hotter-than-expected inflation data since the start of the year has diminished the odds of an immediate interest rate cut by the Federal Reserve.

The consumer price index, a broad measure of the price of everyday goods including gasoline, groceries and rent, rose sharply in March for the third straight month, rattling investors and triggering a broad market sell-off.

Fed Chair Jerome Powell cautioned that persistently elevated inflation will likely force policymakers to delay rate cuts until later this year.

“More recent data shows solid growth and continued strength in the labor market, but also a lack of further progress so far this year on returning to our 2% inflation goal,” the Fed chief said during a panel discussion on Tuesday.

FED’S POWELL SAYS INFLATION DATA THIS YEAR SHOWS A ‘LACK OF PROGRESS’

The surprisingly strong inflation data, combined with Powell’s hawkish comments, have nearly eliminated the odds of a …