Evaluating the Potential for a June Interest Rate Cut: Insights from Leading Macro Strategist
Macro Strategist's Assessment
In a recent speech, Minneapolis Federal Reserve Bank President Neel Kashkari suggested that interest rate cuts may not happen if inflation remains stagnant. BNY Mellon FX & Global Macro Strategist John Velis weighs in on the potential for a June rate cut.
Market Reaction
Following Kashkari's comments, US Equities (^GSPC, ^DJI, ^IXIC) traded lower, reflecting uncertainty in the market. Velis emphasizes the need for decreased housing and non-housing core services for a rate cut.
- Key Point: Inflation remains a critical factor for the Fed's decision.
- Market Pace: Signs of a slowdown suggest a cautious approach towards predicting rate cuts.
Editor's note: This article was written by Nicholas Jacobino.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.