ACTV - The Latest Economic Data May Postpone Rate Cut Expectations

2024-02-06 10:45:00 ET

Summary

• The FOMC weighed all the economic data and decided to make it clear they would most likely not cut interest rates in March.
• The Fed’s favorite inflation indicator, the core Personal Consumption Expenditure rate, has been under the Fed’s 2% inflation target rate in each of the last seven months, but Powell made clear that interest rates cuts would start no sooner than May 1.
• The Conference Board announced that its January consumer confidence index surged to 114.8, up from a revised 108 in December, marking the third straight monthly gain and the highest reading in over two years.

As the Federal Open Market Committee ((FOMC)) met last week for the first time in 2024, they weighed all the economic data and decided to make it clear they would most likely not cut interest rates in March....

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