Fed rate cut forecast moved to July, from June: “Fed has simply run into a brick wall”

The Federal Open Market Committee (FOMC)’s policy decision will be released on Wednesday May 1 at 2 pm US EDT (1800 GMT) with Fed Chair Jerome Powell following up with his press conference at 2:30 pm (1830 GMT).

Comments from Citi come via a Reuters report:

• after data released on Friday showed the PCE index increased at a 2.7% annual pace in March versus 2.5% in February, while the number stripped of volatile food and energy prices was 2.8%, matching February
• “The Fed has simply run into a brick wall,”
• “This is very strong data and it is not data that has given them any confidence they are meaningfully on their way to 2%…The Fed is simply going to have to wait.”

This article was written by Eamonn Sheridan at www.forexlive.com.