Summary
No traditional justification for U.S. rate cuts in the short term due to strong employment, retail sales, and GDP. Fed Chair Powell now suggesting they may hold rates high for longer than expected.
Key Points
1. No traditional justification for U.S. rate cuts in the short term
2. Strong employment, beating retail sales expectations, and expected Q1 GDP not much lower than Q4
3. Fed Chair Powell suggesting holding rates high for longer than previously anticipated