David Kelly of JPMorgan Asset Management says that the latest CPI data eliminates the possibility of an interest rate cut in June. In his view, the problem lies with Federal Reserve Chairman Jerome Powell's desire to reach a consensus within the committee. Out of 51 meetings, only eight were contentious. Kelly believes that Powell will not be able to convince the committee to support a rate cut in June, especially if the data does not support such a move. He mentions that inflation is higher than the Fed would like. Despite his preference for forward rate normalisation, Kelly admits that recent inflation makes a rate cut in June unlikely.
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