"Powell Signals Delay in Rate Cuts Amid Inflation Concerns"

Disappointing inflation data has led the Federal Reserve to delay its first interest-rate cut and re-evaluate the trajectory of price growth, with Chair Jerome Powell indicating a longer wait for rate adjustments. Concerns about the effectiveness of high borrowing costs in curbing demand have sparked a debate among policymakers, with some expressing openness to raising rates if necessary. Economists now expect two rate cuts this year, down from three forecast in March, as the economy continues to show resilience and strong demand. Financial conditions and the potential for a fundamentally different post-pandemic economy have also raised questions about the need for rate reductions.