Summary
Stronger-than-expected economic data and fresh commentary from policymakers is pointing away from any near-term policy easing. Traders this week again shifted futures pricing, moving away from the likelihood of a reduction in rates in September and now anticipating just one cut by the end of the year.
The central bank's benchmark fed funds rate has stood at 5.25% to 5.50% since last July. At that rate, annual inflation likely would be stuck just shy of 3%, or still well above the Fed's 2% goal. Goldman Sachs pulled back its first expected cut to September, though the firm still expects two this year.
