"Federal Reserve Official Expects Delayed Rate Cuts Amid Modest Inflation Decline"

Federal Reserve vice chair Philip Jefferson indicated that rate cuts may not happen until later this year, despite hotter-than-expected inflation readings. He expects consumer spending to slow, but there's a risk it could remain resilient, stalling progress on inflation. The Fed could hold rates longer or ease sooner depending on inflation's evolution. Markets now predict a first rate cut starting in June, as Fed officials emphasize the importance of carefully assessing incoming data. Jefferson believes the policy rate is likely at its peak for this tightening cycle, and expects inflation for core services to moderate as the job market cools.