Investors are getting nervous that inflation ‘could possibly overheat again,’ strategist says

January’s Producer Price Index (PPI) data rose above much higher than expected both month-over-month and year-over-year, compounding on the implications of this week’s hot CPI inflation print. Atlanta Fed President Raphael Bostic is among the cast of Federal Reserve officials who are in no rush to cut interest rates in early 2024 on this data.
SoFi Head of Investment Strategy Liz Young joins Yahoo Finance Live to discuss investor sentiments coming off of January inflation data and what the Fed could be forecasting for “later rather than sooner” rate cuts in 2024.
“If we get bad data again for February, if things have heated up quite a bit, then I think investors really start to take heed that… maybe we shouldn’t even cut rates starting in May or June, and that’s where we start to get nervous,” Young explains. “You have to think about what drove… the rally towards the end of the year last year. It was the expectation that the Fed was going to pivot, that inflation had been solved, that rates were going to come down sooner than maybe we had originally expected.”
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