Fed's Mouthpiece: Powell Lowers Rate Cut Expectations

"Federal Reserve mouthpiece" Nick Timiraos wrote that Federal Reserve Chairman Powell said the strong inflation in the first quarter brought new uncertainty to whether the Fed can lower interest rates this year without signs of economic slowdown. His remarks indicate that after inflation data exceeded expectations for three consecutive months, there has been a significant shift in the Fed's outlook, which seems to break hopes of preemptive rate cuts by the Fed. Powell also said if inflation continues to be above 2%, the Fed may keep interest rates at their current high levels for a longer period. This suggests that if inflation is stronger than expected, it is less likely to further raise interest rates.