"Fed megaphone": Fed officials expect longer wait for rate cuts as inflation progress setbacks

On May 23rd, Nick Timiraos, "the mouthpiece of the Federal Reserve", wrote in an article that Federal Reserve officials concluded at their latest meeting that they need to maintain interest rates at current levels for longer than previously expected. Last month, US inflation data disappointed for the third consecutive month. According to the latest meeting notes, while officials still believe interest rates are high enough to restrain economic activity and reduce inflation, they hinted that they are less certain about the degree of policy restrictions. An unspecified number of officials mentioned their willingness to tighten policy further if inflation risks justify tightening. Price pressures slowed markedly in the second half of last year, and Fed officials hinted in March that they might be ready to start cutting interest rates if there was another month or two of tepid inflation. But a flurry of data in the first quarter suggested price pressures were building in the economy, and the Fed has been forced to shelve any consideration of starting to cut rates in the coming months unless the job market unexpectedly weakens.