SPVU - Odds Are The Fed Won't Cut Rates In 2024
2024-04-03 18:05:56 ET
Summary
- In comments today, Fed Chair Jay Powell emphasized patience when it comes to cutting rates, while maintaining policy is restrictive.
- The market disagrees with Powell's view on monetary policy being restrictive, as inflation swaps and breakevens trend higher.
- Rising commodity prices and warning signs indicate that inflation readings in the coming months may not be favorable, reducing the likelihood of rate cuts in 2024.
It seems pretty clear that Jay Powell is not rushing to cut rates. He has spoken twice since the February PCE report , and both times, he has emphasized patience regarding the Fed's next steps. He has also, to some degree, played down the elevated January and February inflation reports....
Odds Are The Fed Won't Cut Rates In 2024