"Fed's megaphone": The Fed's "no rate cut" camp has become more confident

Nick Timiraos, the "Federal Reserve mouthpiece," wrote that three consecutive months of disappointing inflation data have shattered the Fed's prospects of laying the groundwork for a summer rate cut today. The question now is whether stronger-than-expected wage growth last quarter will prompt a broader reflection within the Fed on how to manage the "last mile" of reducing inflation. Over the past six months, Powell has downplayed concerns about rising inflation, but the Labor Department's wage growth report on Tuesday may make the Fed's wait-and-see stance less comfortable. Within the central bank, some officials believe there is no need to cut interest rates this year because the economy is strong and they are concerned that inflation will remain well above 2.5%. The latest data supports them and increases the likelihood that officials are waiting to see more evidence of an economic slowdown. (Sina Finance)