"Inflation Data Sparks Market Turbulence, Dims Rate Cut Hopes"

Market expectations for a June rate cut by the Federal Reserve plummeted after hotter-than-expected inflation data and hawkish-leaning minutes from the central bank’s March meeting, with traders now pricing in only a 17.5% chance for a rate cut and an 81.8% probability for a hold. The hot CPI data furthered fears of sticky inflation, fueled by rising commodity prices and robust consumer spending, while Fed minutes revealed officials considering higher-for-longer interest rates and even floated the possibility of more rate hikes, citing relative strength in the U.S. economy.