Fed mouthpiece: Powell lowers expectations for rate cuts

"Fed Whisperer" Nick Timiraos wrote that Fed Chairman Powell said that strong inflation in the first quarter has brought new uncertainty to whether the Fed can lower interest rates this year without signs of economic slowdown. His comments indicate a clear shift in the Fed's outlook after inflation data exceeded expectations for the third consecutive month, which seems to have dashed hopes that the Fed may preemptively cut interest rates. Powell also said that if the inflation rate continues to be above 2%, the Fed may maintain interest rates at their current high levels for a longer period of time. This suggests that it is unlikely to further raise interest rates if inflation is stronger than expected.