Stephen Innes, managing partner at SPI Asset Management, sai...

Stephen Innes, managing partner at SPI Asset Management, said Fed chair Jerome Powell has maintained that the narrative of disinflation remains intact, even in the face of inflationary overshoots observed in January and February.

He noted that there is a sense Powell has downplayed the significance of the impending release of PCE, by indicating that it may not significantly alter the prevailing narrative around inflation.

“This downward trend in consumer sentiment could signal potential headwinds for the US economy, suggesting the possibility of a slowdown in the near future and something the Fed might view as a precursor to rate cuts,” he added.