Posted 4/6/2024, 4:12:00 PM
Top Economist: Fed Likely to Hold Rates Steady This Year As Economy Shows Unexpected Strength
- Top economist says the Fed will not cut rates this year due to the economy showing surprising strength recently
- Robust economic data like the recent jobs report suggests the economy may not need stimulus from lower rates
- Some Fed officials argue there is little need to cut rates with inflation falling and economic growth steady
- The Fed will watch inflation closely as the main factor in deciding whether to cut rates
- Factors like immigration leading to a larger labor supply could allow the economy to grow without reigniting inflation