US inflation fears linger after Fed's rate cut
Federal Reserve chairman Jerome Powel highlighted "a challenging situation" for policymakers, noting that risks to inflation were tilted to the upside and risks to employment to the downside. Picture: AP Photo/Mark Schiefelbein
Investors look set to face a volatile few months ahead after the US Federal Reserve resumed interest rate cuts and opened the door to further easing but tempered its message with warnings of sticky inflation, sowing doubt over the pace of future policy adjustments.
Some investors are now less certain that a rapid shift to lower borrowing costs will materialise, potentially dampening optimism that stocks and bonds would get a strong lift from easier policy. Adding to the uncertainty was a wide variety of views within the Fed on the future path of rates.
