Fed Officials Urge Patience on Rate Cuts Despite Economic Stresses

Traders pare back bets on rate cuts as Fed officials caution against easing too early, citing still high inflation.

Economist says Fed wants more confidence inflation is slowing to 2% target before cutting rates, from risk management perspective.

Fed sees no urgency to cut rates with economy performing well and financial conditions still easy.

But Fed also concerned about stresses like rising delinquencies, so still sees case for rate cuts to sustain soft landing.

Pushing out rate cuts may not hurt labor market much if economy stays resilient and fundamentals look strong.