United States inflation fell during the last months of 2023, however in the first quarter of this year several economic data surprised and caused a small increase.
Steven Cohen, investor and CEO of the company Point72, stated that it will be difficult for North American inflation to reach the 2% target established by the Federal Reserve (Fed). In an interview with “CNBC”, the North American investor declared that “the Fed expects inflation to fall to a rate of 2%”. However, “I think it’s going to be difficult,” he added.
United States inflation fell during the last months of 2023, however, in the first quarter of this year, several economic data surprised and caused a small increase. In January of this year, inflation stood at 3.1%, however, in February, this indicator rose to 3.2%.
Economic data from the beginning of the year caused some concern, namely that inflation could ‘stick’ to a level above the Fed’s target, which would cause complications in lowering interest rates.
The Fed was expected to start cutting rates by 25 basis points in June, however, according to “Reuters”, the traders they estimate that this possibility is 57%, which shows a decrease compared to last week, in which the possibility was 64%.
The CEO of Point72 reveals that there is too much underemployment in the country, a factor that could contribute to greater pressure on inflation if economic growth remains strong.
Despite his concerns about inflation, Cohen does not disagree with the market regarding the estimate of three cuts this year, also projected by the president of the Cleveland Fed and the head of the Fed in San Francisco.
