From Forbes: 2024-05-06 12:33:44

The Federal Open Market Committee is expected to keep interest rates unchanged at its next meeting, reflecting concerns over stagnating disinflation. The Fed may still cut rates one to three times in 2024, depending on inflation and labor market trends. Inflation figures for April and May, as well as employment data, will be crucial factors.

Fed Chair Jerome Powell has shifted focus to employment data as inflation moderates. The recent jobs report for April was weaker than expected, potentially signaling a need for interest rate cuts to support the employment goal. Wage growth, while slowing, remains historically elevated, impacting the disinflation outlook.

Market expectations suggest lower interest rates in 2024, with a higher likelihood of cuts from July onwards. FOMC projections in June will provide clarity on rate cuts, but recent economic data may influence the decision-making process. The upcoming meeting on June 12 is unlikely to result in rate adjustments, placing more emphasis on economic indicators going forward.



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