The Evaporation of Easing Bias: Fed Chair Powell Signals Longer Wait for Rate Cuts

For months, Federal Reserve Chair Jay Powell assured the public that rate cuts in 2024 were on the horizon, attributing higher-than-expected inflation reports as a temporary hurdle to achieving the Fed’s goals. However, this past week, Powell’s tone shifted, signaling that the anticipated rate cuts might be delayed.

Powell admitted, “The recent data have clearly not given us greater confidence, and instead indicate that it’s likely to take longer than expected to achieve that confidence.” This message from Powell suggests that interest rates will remain higher for a longer duration than initially projected.

Interestingly, Powell wasn’t the only influential