Fed Rate Cut Hopes Fade as Inflation Stays High

Inflation has remained high for 3 straight months, casting doubt on anticipated Fed interest rate cuts this summer. Rate cuts may be delayed or removed from 2024 calendar.

Strong jobs growth and economic resilience allows Fed opportunity to hold rates steady at current high levels without risking recession.

Fed Chair Powell said incoming data will guide rate decisions amid uncertainty if recent inflation readings are just "a bump."

Where as rate cuts were expected to start in June earlier, persistent inflation makes a June cut unlikely now. Some doubt if there will be any cut this year.

Bank of America still predicts a rate cut in June but acknowledges risk of delay due to latest inflation data.