Fed rate cuts delayed due to strengthening U.S. economy and inflation concerns

Reported 6 months ago

The U.S. economy's resilience, driven by a strong job market and consumer spending, has raised fears that the Federal Reserve may delay or cancel rate cuts until early next year due to inflation worries. Recent data showing robust growth, coupled with record-low jobless claims, has shifted expectations, with Goldman Sachs even revising its rate-cut forecast. While some predict a rate reduction in September, others believe the Fed may act sooner to prevent rising unemployment. The central bank's upcoming decisions will be guided by evolving economic indicators and the risk of stagflationary conditions amid the looming November election.

Source: YAHOO

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