Reported 4 months ago
The Federal Reserve's stance of maintaining higher interest rates for a longer period is expected to remain firm despite a new inflation reading showing a steady core Personal Consumption Expenditures index. The annual increase in April stayed at 2.8%, and while the month-over-month increase showed slight improvement at 0.2%, economists like Ryan Wang from HSBC believe there hasn't been significant progress on disinflation. Fed officials, including New York Fed president John Williams and Fed Chair Jerome Powell, express caution and don't feel an urgent need for rate cuts yet. Hopes for a rate cut this year are diminishing, with investors reducing the odds of a rate cut in September and favoring cuts in November instead.
Source: YAHOO