Analysis - Fed Meeting, Benign Inflation Keep Soft Landing Hopes Alive

Reported about 1 year ago

Soft landing hopes for U.S. stocks received a boost as the Federal Reserve acknowledged progress in combating consumer prices and unexpected unchanged U.S. consumer prices in May, potentially paving the way for rate cuts. Fed Chairman Jerome Powell emphasized the economy's resilience despite falling inflation and signaled the need for more evidence before considering a rate cut. Investors' optimism about a soft landing was evident in the S&P 500 reaching a record high, while the Fed adjusted expectations for rate cuts from three to one. Despite market anticipation, the Fed is cautious, balancing the need for rate adjustments with ensuring sustainable economic growth.

Source: YAHOO

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