"Diminishing Odds: US Economy Unlikely to See Interest Rate Cuts in 2022"

Hotter-than-expected inflation data has reduced the likelihood of an immediate interest rate cut by the Federal Reserve, with Fed Chair Jerome Powell indicating that persistently elevated inflation will likely delay rate cuts until later this year. The surprisingly strong inflation data and Powell's hawkish comments have nearly eliminated the odds of a May rate cut and reduced the likelihood of a June cut. Policymakers are now grappling with when to ease the current level of restriction, with most investors expecting the Fed to begin cutting rates in September and anticipating just two reductions this year.