The U.S. Federal Reserve kept the short-term Fed Funds Rate unchanged at the 5.25% to 5.50% level at the early May 2024 meeting. Inflation data over the past months, showing the economic condition above the central bank’s 2% target, curbed the Fed’s enthusiasm for rate cuts. Meanwhile, the Fed tossed the rate cut proponents a bone as it announced it would reduce quantitative tightening in June, taking pressure off rates further along the yield curve.
In a March 20, 2024, Barchart article on the next move in U.S. interest rates, I wrote:
