The WSJs Timiraos is out with an article titled “The Dreams of Fed rate cuts is slipping away”.
A abstract of the article says:
Fed Chair Jerome Powell and Inflation Expectations:
- Powell has decreased expectations for rate of interest cuts.
- Latest financial experiences have constantly proven inflation being extra persistent than initially anticipated, contradicting hopes for important charge reductions quickly.
Financial and Inflation Knowledge:
- Commerce Division knowledge revealed inflation has been stickier than anticipated for 3 consecutive months, following a interval of relative enchancment.
- Development has been extra resilient, with GDP rising at a 1.6% annual charge, whereas underlying demand steered a stronger 3% charge.
Inflation Developments and Changes:
- Core inflation for Q1 rose at a 3.7% annualized charge, with a year-on-year enhance of two.9%.
- Upcoming worth knowledge for March is anticipated to indicate continued robust inflation, doubtlessly revising January and February’s knowledge larger.
Market sentiment has shifted in the direction of anticipating fewer or no cuts this 12 months.
For the total article CLICK HERE.
