Opinion: CPI report is good news for Fed rate cuts

Odaily Planet Daily News Florian Elpo, investment manager at Lombard Odier Bank, said that although the details of the US February CPI report looked promising, the fact is that inflation is still above target. "In terms of inflation, this report is a positive signal, consistent with our current forecast signal. In terms of growth, it may be bad news, but in terms of the Fed's rate cut, it may be good news." Chad Flynn, managing director of Charles Schwab UK, said that although similar declines in inflation may not become a trend, today's figures are a welcome development. "New government policies involving trade barriers and immigration controls may cause inflation to rise in the short term and slow economic growth in the long term. Inflation concerns have been front and center in recent quarters, however, economic growth has become a greater concern for market observers, so when the time is right, it may be this that prompts the next interest rate adjustment." (Jinshi)