Recent inflation data in the United States has dampened expectations for an imminent interest rate cut by the Federal Reserve. Persistent inflation pressures have led to a shift in the Fed's stance, now favoring a 'higher-for-longer' policy. This change is reflected in updated Fed rate forecasts, which now predict fewer rate cuts in 2024. Financial markets have adjusted their expectations accordingly, with only a 45% probability of a rate cut by September.
Will the Fed cut rates soon? Our Fed sentiment index suggests Powell needs to get more hawkish—and as soon as this week https://t.co/ebXRQolUKM
As the debate rages over whether and when the Fed cuts interest rates, another is being waged over where they will settle https://t.co/1c0htzbz3F via @WSJ
Another hot inflation reading reinforces that any near-term interest rate cuts are less likely as the Fed shifts to a higher-for-longer stance. Markets are pricing in only a 45% chance of the first rate cut in September. https://t.co/gwlHTlkYYj
Inflation Data Reinforce Powell’s Shift Toward High for Longer Stubborn price pressures mean first rate cut likely delayed Fed’s updated rate forecasts likely to show fewer cuts in ‘24 https://t.co/dVYyEC4g97
🇺🇸 Stubborn inflation dampens hopes of US interest rate cut https://t.co/pTDoqyijRO