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

On May 1st, Nick Timiraos, the "Federal Reserve's mouthpiece", said in a new post that three consecutive months of disappointing inflation data have shattered the prospect of the Federal Reserve laying the groundwork for a summer interest rate cut today. The question now is whether last quarter's stronger-than-expected wage growth will prompt a broader rethink within the Fed on how to manage the "last mile" of reducing inflation. Powell has played down concerns about rising inflation over the past six months, but the Labor Department's wage growth report released on Tuesday may make the Fed's wait-and-see stance less comfortable. Within the central bank, some officials see no need to cut interest rates this year because the economy is strong and they fear inflation will stay 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.