Why a Fed Rate Cut in June Is Not yet a Done Deal
Economists detect more uncertainty at the central bank. An interest-rate cut at the Federal Reserve's June meeting, though now widely expected, should not be viewed as decision that has already been made, Fed watchers say.When Fed Chair Jerome Powell's press conference ended last Wednesday, expectations that the Fed would cut rates in June shot higher, ending the week at a 67% chance in futures markets, up from just above 50% earlier in the week, according to the CME Group.But economists think the bond market is getting ahead of itself."The bond market has expected them to move a little early the whole time. I wouldn't be surprised if they wait one more meeting [until July]," said Ethan Harris, retired chief global economist at Bank of America.The January and February consumer inflation readings were "two bad months," and they need three friendly reports before they're ready to pull the trigger. "That may not be in time for June," Harris said.This group came to light in the economic f
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