Some major brokerages expect the US Federal Reserve to lower interest rates in June, months later than what markets had predicted earlier this year, as sticky inflation fanned concerns of cutting rates too soon, reports Reuters.
Fed minutes of the Jan. 30-31 session published last month signaled broad uncertainty among the policymakers about how long borrowing costs should remain at their current range of 5.25 per cent-5.50 per cent to bring inflation to the central bank's 2 per cent target.
In the 12 months through February, consumer prices increased 3.2 per cent, after advancing 3.1 per cent in January, though the annual increase has slowed from a peak of 9.1 per cent in June 2022.
Earlier in March, Chair Jerome Powell said the Fed was "not far" from gaining the confidence it needs in falling inflation to start easing rates.
Separately, a Reuters poll showed last week that a strong majority of economists believe the Fed will cut its key interest rate in June, in line with market expectations, though the likelihood has fallen close to 53 per cent from a near 60 per cent probability, according to CME's FedWatch, tool.
Major brokerages don't expect Fed rate cut till June
FE Team | Published: March 18, 2024 22:28:32
Major brokerages don't expect Fed rate cut till June
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