"Powell's Caution: US Inflation Delays Rate Cut Expectations"

US Federal Reserve chair Jay Powell stated that it will take longer than expected for inflation to reach the central bank's 2% target, leading to a reevaluation of rate cut expectations. The Fed's previous intention to cut rates this year is now being debated due to signs of persistent strength in the US economy and higher-than-anticipated inflation. Meanwhile, European Central Bank president Christine Lagarde indicated that the eurozone is still on track to cut rates in the near future, despite observing a disinflationary process. The widening gap between rate expectations for the Fed and other big central banks reflects the differing economic conditions in the US and Europe.