According to BlockBeats, on April 17, Jerome Powell, the Chairman of the Federal Reserve, expressed that the robust inflation in the first quarter has introduced new uncertainties about whether and when the Federal Reserve could cut interest rates later this year. He stated that if high inflation persists, the Federal Reserve could maintain the current interest rates as long as necessary.
Nick Timiraos, a Wall Street Journal reporter often referred to as the 'Fed's mouthpiece', suggested that Powell's latest comments indicate a significant shift in the Federal Reserve's outlook after inflation data exceeded expectations for the third consecutive month. This seems to shatter hopes of the Federal Reserve taking a proactive approach to cutting interest rates.
Futures markets show that market expectations for a Federal Reserve rate cut have further declined following Powell's comments on inflation. Investors are now betting on only one or two rate cuts this year, with expectations around 40 basis points.