U.S. inflation remains stubborn, traders continue to bet on a July rate cut

Jinse Finance reported that data shows that in February, the preferred inflation index of the Federal Reserve continued to rise at a stubborn pace, while the monthly personal expenditure rate was lower than expected, indicating that household demand was weaker than expected. This indicates that consumers are becoming more cautious as concerns about financial conditions intensify. After the data was released, stock index futures fell further, and bond yields remained at low levels. Swap traders continue to expect two 25 basis point rate cuts this year, with the first rate cut expected in July. Today's report indicates that inflation is stubborn and difficult to eliminate, and Trump's planned tariffs could further exacerbate price pressures. His aggressive trade policy has already undermined the confidence of businesses and consumers, coupled with signs of increasing financial pressure on households, sparking concerns that the economy may be heading into stagflation or even recession.