Posted 2/18/2024, 9:02:47 AM
Inflation Sticks Around, Forcing Fed to Keep Rates Higher
- Inflation is declining slower than expected, dashing hopes for quick Fed rate cuts
- Consumer and producer price data show inflation is stickier than anticipated
- Investors now expect the Fed to hold rates steady through May and potentially start cuts in June
- Strong job market gives Fed room to keep rates higher for longer without damaging economy
- GDP grew solidly in 2022 and is expected to remain resilient in early 2023 even with tighter policy
