'Stagflationary' GDP Data Sparks Market Turmoil, Rate-Cut Hopes Crushed Weaker than expected growth and hotter than expected prices... the perfect example of a central banker's nemesis: Stagflation... ...and the market is very unhappy about it. Olu Sonola, head of US economic research for Fitch Ratings: “The hot inflation print is the real story in this report. If growth continues to slowly decelerate, but inflation strongly takes off again in the wrong direction, the expectation of a Fed interest rate cut in 2024 is starting to look increasingly more out of reach.” Rate-cut expectations have dropped back near cycle lows (for 2024 and 2025)... Source: Bloomberg Treasury yields are soaring, led by the short-end... Source: Bloomberg With 2Y back above 5.00% (will it hold)... Source: Bloomberg Stocks are getting spanked... Commodities are less anxious with oil sliding a little, gold rallying modestly even with the dollar rising... Source: Bloomberg Crypto is heading lower... Source: Bloomberg What time is the Biden press conference to confirm there will be rate-cuts this year? Tyler Durden Thu, 04/25/2024 - 09:00