"Market Uncertainty: Analyzing the Impact of March Inflation Data on Rate-Cut Expectations"

Bank of America anticipates a moderation in core CPI inflation for March, with a projected 0.2% month-on-month decrease, while the headline CPI is expected to slightly increase to 0.3% month-on-month. These outcomes could bolster the Federal Reserve's confidence and potentially pave the way for a rate cut in June, aligning with market predictions. However, a significantly stronger inflation report may pose risks to this outlook, potentially delaying the commencement of the rate-cutting cycle.