US Federal Reserve unlikely to cut interest rates in the coming months while UK and Eurozone consider rate cuts

Published: 04 May 2024 at 11:13

Chair Jerome Powell of the US Federal Reserve has ruled out rate cuts due to disappointing economic data, while indicators in the Eurozone and UK suggest potential rate cuts in the summer, leading to speculation of divergence between central banks. The Bank of England may break tradition and ease monetary policy before the Federal Reserve. UK households may have to wait longer for a rate cut. Governor Andrew Bailey has distanced UK and US monetary policy, with markets adjusting expectations from seven US rate cuts to two this year, with potential cuts in September, November, and December.

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