Summary
Fed members are not considering easing monetary policy until they see sustained inflation trending downward. Traders have reduced their expectations of rate cuts, with only two or three expected for the year, with the first move possibly in June or July.
Key Points
1. Fed members are not inclined to begin easing monetary policy until seeing a sustained path of inflation trending downward.
2. Traders have reduced their expectations of rate cuts, with only two or three cuts priced in for the full year according to the CME FedWatch Tool.
3. The first rate cut is expected to come in June or July, according to market expectations.