Not Fed Up with Higher Rates Yet
by AIB Treasury Economic Research Unit
- We are in the midst of the April-May round of central bank meetings.
- In short, assessing the meeting statement and Chair Powell’s press conference, the Fed is guiding that official US interest rates will remain at their current level for longer than previously envisaged.
- The Fed acknowledged the recent stickiness to inflation in its meeting statement.
- Amid higher than expected inflation, on-going strength in the labour market and less dovish soundings coming from FOMC members over recent weeks, market expectations for US rate cuts have been scaled back significantly.
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