Stock Markets Are in Denial Over Inflation. Why Investors Face a Shock Ahead and 5 Other Things to Know Today.

From Barron’s Daily

“the outlook for interest rates in 2025 is only becoming less certain. The market is currently pricing in a half-point worth of cuts by June–a month ago they were predicting a full percentage point cut from current levels. The possibility of inflationary Trump policies is perhaps being priced in.

While puzzling at first, Wednesday’s reaction makes sense. The Fed can’t preempt Trump’s policies and can only look at the data. Stock markets aren’t missing the future risk–it’s there for all to see as long-term Treasury yields creep higher. Investors are just choosing to seize the day as Trump trades continue to lift sentiment.”