The recent run of stronger inflation and activity data has unsurprisingly shaken the Fed’s confidence that inflation is on track to return to the 2% target. In that environment, we expect the May FOMC meeting to be mostly a holding exercise. Nevertheless, if we are right, and the disinflationary trend reasserts itself soon, then the Fed should still be in a position cut rates in the fall.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services