""We still think interest rate cuts are more likely than hikes, especially given the Fed's dual mandate (price stability AND maximum employment)." - ING's James Knightley."
""As long as long-run inflation expectations remain well anchored, we still think the Fed will step in later this year and cut interest rates twice to shore up the labor market in the face of this energy supply shock." - Bernard Yaros at Oxford Economics."
""We expect core CPI inflation to drop to about 2¼% by the end of this year, from 2.6% in March, enabling the FOMC to ease policy again to support the teetering labor market." - Sam Tombs at Pantheon Macroeconomics."
Oil prices reached $101 per barrel, impacting market performance. S&P 500 futures fell 0.53% before the New York open, while the index closed down 0.11% on Friday. Analysts are debating the Fed's response to rising inflation, which increased to 3.3% in March. Many expect the Fed to cut interest rates later this year despite inflation concerns, citing factors like price stability, maximum employment, and political pressure. Predictions include potential cuts to support the labor market amid ongoing economic challenges.
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