3m agoKay Haigh, global co-head of Fixed Income and Liquidity Solutions at Goldman Sachs Asset Management, weighs in:

“Today’s softer than expected CPI release feels backward looking given the large changes to trade policy seen in recent days. Going forward the Fed is likely to face a difficult trade-off as tariff-driven price increases start to feed through to the inflation data and activity remains soft. We expect the Fed’s initial reaction to be cautious, but the risks remain that a sharper than expected slowdown in the economy could result in a resumption of the Fed’s easing cycle.”

Emily GraffeoCross Asset Reporter