Powell likely to signal that lower inflation is needed before Fed would cut rates

After recent reports of persistently high inflation, Federal Reserve officials are cautious about interest rate cuts this year, with Wall Street predicting possibly just one reduction. Despite earlier expectations of up to six cuts, persistent inflation and strong economic indicators like robust consumer spending and low unemployment suggest the Fed may maintain or even increase rates if necessary. The Fed is also considering slowing the reduction of its bond holdings to avoid market disruptions.