📈 Two Fed governors hinted at keeping rates higher for longer due to the slow decline in inflation.

On Monday, Vice Chairman Fed Vice Chairman Philip Jefferson and Vice Chairman Fed for Surveillance Michael Barr have said that current interest rates should remain at their current level until there is more convincing evidence of falling inflation. This underscores their intention to keep rates higher for longer.

Jefferson pointed out that April inflation, as measured by the consumer price index, did provide positive signals, rising by 3,6 %, cooling from March's increase of 3,8 %but this is not enough. TheFed's long-term target is 2% growth rate.

Barr said in Atlanta : "We are in a good position to hold rates steady and watch closely as conditions evolve."

Fed estimates that it will take more than quarterly data to sustain a decline in inflation. Consumer spending remains strong, which may slow later in the year given how high interest rates are weighing on the economy.

FedChairman Jerome Powell said last week that theFed needs more than three inflation reports to make a confident decision to cut rates. Investors now estimate the chances of a September rate cut are less than 50 %.

How do you see it? Do you think we will see a rate cut in September? 💭 What effect do you think a rate cut would have on the markets, which are now at all-time highs? Would we be looking at new highs and breaking records, or do you think the stock market is already so tight that we will see some sort of flattening? Share your opinion in the comments !!!📉