Fidelity International: Fed may not cut rates this year

Salman Ahmed, Global Head of Macro and Strategic Asset Allocation at Fidelity International, emphasized his basic prediction of no rate cuts this year. The analyst said, "If inflation continues to make progress over the summer, or if the labor market starts to show some signs of stress, we do think the likelihood of a rate cut this year is rising." "That said, the U.S. economy remains resilient, and today's release of inflation data, which was impacted by the auto insurance and airfare subcomponents, means that the bar for initiating a rate cut remains high."