The Federal Reserve has very few reasons to move interest rates in one direction or the other. They have refused to heed the president of the United States’ call to cut rates earlier this month, and it appears they will remain on hold for a while.
Here is the latest quote from Atlanta Fed President Raphael Bostic:
“We’re only going to have one more measure of inflation. We’re going to have a lot that’s unknown about how other policies are impacting the labor market. And without that kind of clarity, I don’t think it’s going to be my view that it’ll be appropriate to move in any direction at this point”.
The chart below illustrates the stability of the 10-Year note lately. We expect this to continue in the foreseeable future until new information comes in towards the end of the summer.
Dennis Leontyev
