As bets on sooner Fed rate cuts dwindle, one analyst sticks with call for July cut
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Many on Wall Street have given up hope for sooner rate cuts, but one analyst, Steve Englander, continues to bet on a rate cut as soon as July. Englander, Head of Global G10 FX Research and North America Macro Strategy, points to recent slowing in the economy and inflation data that suggest the disinflation trend is alive. About 14% of traders expect the Fed to cut rates in July. The latest core PCE data, released Friday, showed inflation slowed more than expected in April. Englander expects more slowing in the coming months. He believes that a large chunk of the Q1 labor market strength was due to undocumented immigrants getting employment authorization. Recent data showing weakened consumer spending in April adds credence to Englander's outlook. Despite this, some Fed members are leaning into the central bank's higher rates for longer stance.

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https://www.investing.com/news/economy-news/as-bets-on-sooner-fed-rate-cuts-dwindle-one-analyst-sticks-with-call-for-july-cut-3466210