Soft Landing or No Landing? Fed’s Economic Picture Gets Complicated.
Associated media - Associated media
Mr. Biden said on Wednesday that he stood by his prediction that the Fed would lower interest rates this year — an unusual comment from a president who usually avoids talking about Fed policy out of respect for the central bank’s independence from the White House.
“This may delay it a month or so — I’m not sure of that,” Mr. Biden said.
Many Fed watchers think today’s high rates could persist for considerably longer. Many economists and investors previously expected rate cuts to start in June or July. After this week’s inflation report, investors increasingly see rate cuts starting in September or later.
Blerina Uruci, chief U.S. economist at T. Rowe Price, noted that the longer inflation flatlined, the more it could delay rate cuts: Officials are ...