Recent economic statistics for February 2023.

 CPI (y-o-y): 6.4%

The US CPI had been declining the the past few months because of the high base effects from the previous year.  This will continue to affect the future CPI for the next few months as indicated by the chart (High base effects) below.

The US PPI was also facing the same high base effects from the previous year.

However, the sticky inflation chart is showing a different outcome.  The chart below is showing a persistent high inflation in the US.  Therefore, the US FED is unlikely to cut its fed rate in 2023.

Conversely, the traders had changed their rate reduction stance and projected a higher rate path after the recent CPI and PPI releases.