Hopes for a September rate cut are falling even after Federal Reserve Chair Jerome Powell’s latest speech.
Powell said inflation is moving lower but the Fed still needs stronger proof before cutting rates. Many investors had expected a cut in September, but new reports show spending is still high and jobs remain strong.
This made traders less sure about an early move. Bond yields went up and stock markets slowed as investors adjusted their bets.
Powell gave no clear sign of when cuts will come, repeating that decisions will depend on future data.
Now, experts think the Fed may wait longer, possibly toward the end of the year, unless inflation shows a steady drop. #RateCutExpectations
