Investors likely will have to sweat out a summer during which it looks increasingly unlikely that the Federal Reserve will be cutting interest rates.
It looks increasingly unlikely that the Federal Reserve will be cutting interest rates after a batch of stronger-than-expected economic data coupled with fresh commentary from policymakers.Central bankers still lack the confidence to cut and even an unspecified few say they could be open to hiking if inflation gets worse.
A batch of stronger-than-expected economic data coupled with fresh commentary from policymakers is pointing away from any near-term policy easing. Traders this week again shifted futures pricing, moving away from the likelihood of a reduction in rates in September and now anticipating just one cut by the end of the year."The economy may not be cooling off as much as the Fed would like," said Quincy Krosby, chief global strategist at LPL Financial.
Some members at the most recent FOMC meeting, which concluded May 1, even wondered whether "high interest rates may be having smaller effects than in the past," the minutes stated. The informal consensus is for a monthly gain between 0.2% and 0.3%, but even that relatively muted gain might not give the Fed much confidence to cut. At that rate, annual inflation likely would be stuck just shy of 3%, or still well above the Fed's 2% goal.
Federal Reserve Bank Interest Rates Economy Prices Business News
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed's Williams says next Fed move likely to be lower ratesFed's Williams says next Fed move likely to be lower rates
Read more »
U.S. Treasury yields rise as investors weigh Fed speaker commentsU.S. Treasury yields were higher on Wednesday as investors considered the latest comments from Fed speakers about the outlook for inflation and interest rates.
Read more »
U.S. Treasury yields rise as investors weigh Fed speaker commentsU.S. Treasury yields were higher on Wednesday as investors considered the latest comments from Fed speakers about the outlook for inflation and interest rates.
Read more »
Dollar holds steady as investors wait for Fed guidanceDollar holds steady as investors wait for Fed guidance
Read more »
Treasury yields hold steady as investors look to data, Fed speaker comments in week aheadU.S. Treasury yields were little changed on Monday as investors looked to fresh economic data and comments from Federal Reserve officials slated for the week.
Read more »
10-year Treasury yield rises as investors consider remarks from Fed officialsU.S. Treasury yields rose on Thursday as investors considered remarks from Federal Reserve officials, scanning them for hints about the interest rate outlook.
Read more »