Key Points
This decision comes amidst indications from Fed Chair. rate cut. in March seems unlikely, the central bank is gearing up for potential reductions later in the year, possibly starting in May...
He further noted that a unanimous sentiment within the 19-member Federal Open Market Committee (FOMC) leans towards a rate cut in 2024, though the committee seeks more assurance that. is on a steady decline towards the 2% target before taking action...
Despite this, Powell's comments have fueled expectations for a rate reduction, with EY chief economist Gregory Daco stating, "Powell's remarks reinforce our long-standing view that the Fed will start cutting rates in May."..
Powell's guidance, coupled with the potential variability in upcoming core inflation readings, has prompted analysts at Citi to maintain their prediction for the first rate cut in June, though they acknowledge that a cut in May would not be surprising...
As the Fed navigates the delicate balance between inflation control and economic growth, Powell's optimistic outlook for the economy, coupled with a strategic approach to rate adjustments, sets the stage for a pivotal year in US monetary policy...
