Inflation expectations and Fed rate cuts

The recent hot CPI report has led to a pushback in expectations for Fed rate cuts, with BlackRock holding on to June as the most likely month for the Fed to begin cutting. While inflation is decelerating, there are parts of it, particularly on the service side, that remain sticky and not sliding as quickly as anticipated. The narrative surrounding rate cuts has been tempered, with the expectation now being three to four cuts instead of the previously anticipated seven to eight cuts. Despite the slight setback, the stock market is still expected to perform well, especially for US equities, which are projected to have a decent year with potential gains of 6% to 8%.