Posted 3/29/2024, 1:45:00 PM
Fed Signals Patient Approach to Rates Despite Mounting Recession Fears
- Core PCE inflation rose 0.3% in February, keeping 12-month rate at 2.78%, lowest since March 2021
- Fed Chair Powell said not in rush to cut rates, but doesn't want to wait too long and allow economic weakness
- Powell OK with dissent on Fed policy decisions, will aim for broad consensus
- Personal income rose 0.3% in February, below 0.4% forecast; spending rose 0.8%, above 0.5% forecast
- Markets pricing in 70% chance of 3 rate cuts by end of 2024, closing Q1 with S&P 500 at record high