Ifeanyi Jesse 
Biden Says US Inflation May Delay Interest Rate Cuts
Speaking to the country yesterday, US President Joe Biden stated that the March inflation data might postpone interest rate decreases. Indeed, Biden noted that the inflation figures, which rose to 3.5%, more significant than expected, will most certainly influence the Federal Reserve’s decision-making process this year.
Biden stated that he needs to learn more about the Central Bank’s plans for interest rate decreases. However, he assured the public that cutbacks would occur before the year’s end. Alternatively, Fed Chair Jerome Powell recently stated that the US should expect three interest rate decreases by 2024.
President Biden’s Concern Over Interest Rate Cut
Over the past few years, rising inflation has been a significant issue for the United States. The Federal Reserve conducted a years-long tightening effort to reduce the number to its 2% objective. As a result of this strategy of raising interest rates, many people now predict cutbacks in 2024.
According to the country’s commander-in-chief, those may now be questioned. Indeed, US President Joe Biden has stated that inflation figures may postpone the implementation of interest rate decreases in the country. Specifically, the statistics suggest that inflation has increased in the last two months, reversing the previous downward trend.
Although Biden questioned the possibility of quick rate cuts, he did state that one would occur before the end of the year. Alternatively, Fed Chair Jerome Powell has already implied that three rate decreases will happen before the end of 2024. However, the new data calls that into doubt.
The country is waiting to see when these cuts will be implemented. The market now hopes they will arrive as early as June, although this forecast is vague. In January, February, and March, inflation exceeded forecasts.
Furthermore, it remains far from the Federal Reserve’s 2% objective. Unless additional conclusive evidence of lower inflation is shown, June is likely to remain an optimistic outlook. However, the country is waiting to hear from Fed Chair Powell about March statistics in the hopes of getting some guidance.