It's easy to make the prediction that, undoubtedly, the Federal Reserve (FOMC) is leaning toward cutting rates this year at some point, says John Beuerlein, chief economist at the Pohlad Companies.

However, the stickiness of inflation in some categories, along with the strength of the labor market, is causing them to be patient, he notes in his April 2024 report, as the current and ongoing rebound in some economic metrics has reduced the urgency of a near-term interest rate cut.

The markets have moved expectations for the timing of the first interest rate cut to July, Beuerlein suggests.

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