TD Securities: Rising oil prices will complicate the Fed's rate cuts

According to Jinshi News, strategists at TD Securities stated in a report that the Federal Reserve's interest rate cuts will become "complicated." They pointed out that if WTI crude oil prices rise by 25%, it would roughly correspond to an overall CPI increase of about 0.5 percentage points. The strategists mentioned that if inflation remains sticky and economic growth is resilient, it may delay the Fed's easing pace, but the threshold for rate hikes remains high. LSEG data shows that the money market currently expects the Fed to cut rates by 41 basis points this year.