Strong Economy May Delay Fed Rate Cuts Amid Inflation Concerns

The U.S. economy’s unexpected resilience, driven by a strong job market and consumer spending, has raised concerns that the Federal Reserve may delay or cancel planned rate cuts to combat persistent inflation. Minutes from the Fed’s May meeting indicate a readiness to tighten policy if inflation risks persist. As the Fed prepares to release updated growth and inflation forecasts, market expectations for rate cuts are diminishing, influenced by robust economic performance and the upcoming presidential election.