Fed Takes Wait-and-See Approach on Interest Rate Cuts Despite Sticky Inflation

• Recent inflation data shows no rush to cut interest rates, though cuts later this year still possible • Need to see sustained inflation easing before confidence to cut rates
• Number and timing of potential 2023 rate cuts may be reduced due to sticky inflation
• Economy still showing strength, allowing Fed to observe incoming data before deciding on rate changes • Extremely high bar for Fed to raise rates further; main question is timing of rate cuts