US retail sales grew faster than expected, further reducing expectations for a US interest rate cut this year.
After the data was released, the exchange market stopped pricing in interest rate cuts before November altogether. At the start of the year, it was expected to start in March. At this point, expectations for a rate cut are clearly behind the curve.
“If data like March’s retail sales numbers hold up, the Fed may not be in a position to cut interest rates,” said Tracy Chen, portfolio manager at Brandywine Global Investment Management.
Tom Porcelli, chief US economist at PGIM Fixed Income, said the “schedule is working against the Fed” with the US election in the second half of the year.
“If the US Federal Reserve does not act in July and also postpones September or November, it will be December,” he said on Bloomberg Television. “There will be at most one, more likely two, rate cuts this year,” he said.
Headline: Treasury Yields Jump to New 2024 Highs After Hot US Retail Sales
#Expectations #interest #rate #cut #recede #preNovember #expectations #strong #indicators #Bloomberg
