OHIO — Anyone looking to take advantage of interest rate cuts will have to wait a little longer as inflation continues to rise. 

What You Need To Know

  • Higher than expected inflation numbers have filled the first quarter of the year
  • There may be fewer rate cuts this year by the Federal Reserve than initially anticipated
  • Late summer or fall is may be the time where the first rate cut occurs 

Although the Federal Reserve indicated Americans could expect rates to be lowered, inflation threw a wrench in that plan.

“As soon as they pivoted that communication, we have had a string of slightly hotter than expected inflation numbers in the first three months of the year. But I think the overall message would be the lower inflation trends still seems intact, but it’s going to be a bumpy ride on the way down,” said Brandon Zureick, managing Director and portfolio manager for Johnson Investment Counsel.

Zureick believes investors may have become excited a little too quickly when word of rates being lowered came initially; but he said it is likely the Federal Reserve will start cutting interest rates, but there just may be fewer cuts. That’s with the idea of them seeing slower inflation.

“I’d say back half of the summer into the fall will be important to kind of keep our eyes on and that’s when we would expect the first rate cut to be delivered,” said Zureick.