News Digest: Hawkish Comments from US Fed Causes Rate Cut Concerns

June 28, 2024

News Digest:

Comments from the Federal Reserve officials that holding the policy rates steady for some more time could bring down inflation further has raised some concerns. However, these comments ended up bolstering the US dollar against some other currencies.

A news report quoted Fed Governor Michelle Bowman as saying that delaying rate cuts could bring inflation down below the 2% mark while also reiterating her willingness to raise the benchmark rates if the situation demanded. However, Governor Lisa Cook noted that rate cuts would be made at some point due to the progress on inflation and cooling the labor market.


Market data showed that single-family home prices rose steadily in April, growing by 12% over the previous 12 months. Consumer confidence showed signs of easing in June with the index at 100.4 compared to 101.3 in May.  Analysts said the Fed officials appeared non-committal to a rate cut, though economic data appeared to indicate otherwise.

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