WSJ’s Timiraos publishes an article titled “Dreams of Fed Rate Cuts Fading.”
A summary of the article says:
Fed Chairman Jerome Powell and inflation expectations:
- Powell lowered his expectations for interest rate cuts.
- Recent economic reports have consistently shown that inflation is more persistent than initially expected, contradicting hopes of significant rate cuts soon.
Economic and inflation data:
- Commerce Department data showed that inflation has been higher than expected for three consecutive months, following a period of relative improvement.
- Growth was more resilient, with GDP growing at an annual rate of 1.6%, while underlying demand suggested a higher rate of 3%.
Inflation trends and adjustments:
- Core inflation in the first quarter rose at an annualized rate of 3.7%, with a year-on-year increase of 2.9%.
- Upcoming price data for March is expected to show continued strong inflation, which could revise January and February data upwards.
The market now expects fewer, if any, discounts this year.
For the full article CLICK HERE.
cnbctv18-forexlive
