WSJ's Timiraos says "US CPI report isn't likely to change the Fed's wait-and-see posture, as officials will likely want to see more evidence that inflation is levelling off and then declining before cutting rates"

Timiraos' remarks suggest that the Fed remains in a cautious stance regarding potential rate cuts, emphasizing the need for more definitive signs of easing inflation or a weakening job market.

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WSJ's Timiraos says "US CPI report isn't likely to change the Fed's wait-and-see posture, as officials will likely want to see more evidence that inflation is levelling off and then declining before cutting rates"

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  • "To resume rate cuts, Fed officials are likely to need to see either new evidence that job-market conditions are weakening or that price pressures are fading. It could take at least a couple more months of inflation reports for the latter to materialise."
Context

This reflects a wait-and-see approach that may maintain pressure on the USD while markets gauge the timeline for any monetary policy shifts. Traders should watch upcoming inflation data closely for any signals that could impact the Fed's strategy.

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