InflationFederal ReserveInterest RatesStubborn inflation prevents the Federal Reserve from initiating planned interest rate cuts, despite an initially optimistic outlook.
The Federal Reserve's decision to cut interest rates faces challenges from persistent inflation, with recent indicators suggesting the economy is stronger than expected but inflation remains above the Fed's 2 percent target. Despite financial markets hitting new records, concerns about the impact of high rates on borrowing, investment, and the housing market persist, leading to a cautious approach towards rate cuts.