‘Patience Really Matters’: Fed Wants Several More Months of Good Inflation Data Before Rate Cut

The Federal Reserve will keep interest rates higher for longer until there is clear evidence that inflation is coming down to its 2 percent target, as central bank officials expressed the need for “patience” before cutting rates. Monetary policymakers were spooked in the first quarter after three consecutive hotter-than-expected inflation readings, revealing a reacceleration in the various gauges. Financial markets and the Fed breathed a sigh of relief when the April consumer price index (CPI) showed signs of easing inflation pressures. Now that conditions might stabilize again, Fed officials are conveying to the public that they want several months of good inflation data before they are confident enough to start cutting interest rates....