The US Federal Reserve's ongoing fight against inflation could take 'longer than expected,' the head of the US central bank said last night, further paring back the chances of early rate cuts.
The US Federal Reserve's ongoing fight against inflation could take"longer than expected," the head of the US central bank said last night, further paring back the chances of early rate cuts.
But three months of higher inflation data since the start of 2024 have threatened to undermine the expectation of interest rate cuts this year, with one senior Fed policymaker recently suggesting that rates could remain at their current levels until 2025. But hot March consumer inflation data caused many traders to reevaluate and push back their expectations.
"If higher inflation does persist, we can maintain the current level of restriction for as long as needed," Powell said.
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