The highlight of this week will probably be the publication of the U.S. CPI for the month of April. After the March print where the index showed a YoY increase of 3.5%, investors almost immediately discounted no rate cuts by the Fed until November. What do CEOs think about rate cuts? As you can see in the chart below, 38% of CEOs think the Fed will cut once, 31% think that rates will stay the way they are and 28% think the Fed will cut twice. It’s not a definitive margin one way or another. And that uncertainty may bring inaction when it comes to Capital expenditures. Perhaps is simpler for them to buy back some stock and wait to invest in new projects once the monetary policy is clearer and the elections have concluded.
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