Federal Reserve Chair Jerome Powell’s comments after two days of policy meetings were not as hawkish as many had feared given that U.S. inflation and economic activity reaccelerated in the first quarter. While acknowledging that sticky inflation means interest rate cuts will come later than previously expected, Powell said officials had not seriously considered hikes. In our view, lack of progress on inflation in the first quarter could delay rate cuts until the end of the year or even into 2025. Instead, officials seem attentive to downside risks, such as rising unemployment, and comfortable with pursuing something ... (full story)