The Federal Reserve's closely watched inflation measure stayed high in March, signaling that price increases may not be fading as quickly as desired, potentially delaying rate cuts.
Investors' hopes for substantial rate cuts in 2024 are dwindling as inflation persists, with lower rates now expected later in the year, if implemented at all, impacting borrowing costs.
Jerome H. Powell notes Fed's lack of expected progress in inflation before rate cuts, potentially causing interest rates to stay elevated if inflation persists above target.
Despite previously raised interest rates and a perceived 'restrictive' level, the Fed faces challenges in determining if the current rate is truly restrictive with solid economic growth and rapid hiring.
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