Fed officials in no rush to cut rates as inflation worries rise
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Federal Reserve (Fed) officials, including New York Fed president John Williams and Boston Fed president Susan Collins, are saying there is no rush to cut interest rates due to concerns about rising US inflation. Williams stated that there is no clear need to adjust monetary policy in the near term, while Collins mentioned that recent data suggests it may take more time to gain confidence in inflation's downward trajectory. The officials believe that rate cuts will be needed eventually, but the anticipated start of an easing cycle has been pushed further down the road. In Europe, central bankers left the policy rate unchanged but signaled they remain on track to cut rates as soon as June. However, sources suggest that the European Central Bank (ECB) could pause after June to await more clarity from the Fed on its rate decisions. International Monetary Fund chief Kristalina Georgieva expressed concern that higher US interest rates are not great news for the rest of the world. US consumer price index (CPI) data came in stronger than expected in March, leading to a resetting of expectations for when the Fed will be able to cut rates this year.

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