Fed Leaders to Preach Patience Before Rate Cuts Despite Strength of Economic Data

• Fed Chair Powell and Vice Chair Jefferson to speak publicly before next Fed meeting as they balance strong economic data against their view that policy is restrictive and inflation falling • Data since Powell's testimony has challenged Fed's expectation of slowing growth and inflation nearing 2% target, with strong jobs, retail spending, and inflation reports • Economists now see first Fed rate cut being delayed from June to September, with lower odds of additional cuts this year • Powell and Jefferson still likely to preach "patience" before cutting rates, wanting to be sure inflation resumes decline before easing policy • Recent data suggests economy remains strong, giving Fed room to wait on rate cuts to ensure inflation moves down to 2% target