Coming into 2024 there was so much chatter about how the FED would cut rates probably four times in the year.
This was a view that I never agreed with. I kept saying inflation will persist longer than people expect and the FED will have their hands tied. Maybe we see a couple cuts because it is an election year, not because they really make sense.
Inflation.....
Today, we got comments from the FED and the good news is they aren't expecting to raise rates, but that doesn't sound very positive for rate cuts coming soon.
Fed Chair Powell said, "Q1 in the US was notable for lack of inflation progress, and that told us we'll need to be patient and let restrictive policy do its work." He added, "I don't think it's likely that the next move would be a rate hike, but it is more likely that we will hold the policy rate where it is."
The reality this is fine as it is not like rates are crazy high. Historically rates are not super high and are more normal than when we were sitting at a near zero fed funds rate.
Posted Using InLeo Alpha