Further US rate cuts unlikely on inflation fears

In the April 29-30 meeting of the Federal Open Market Committee, the Fed governors voted 8 to 2 to cut interest rates by 25 basis points to 2%. However, Dallas Federal Reserve Bank president Richard Fisher and Philadelphia counterpart Charles Plosser voted against the action on the “worrisome development” surrounding inflation. The news comes as the Fed cut its growth forecast for this year from the 1.3% to 2% predicted in February to between 0.3% and 1.2%. “Although readings on core inflation have improved somewhat, energy and other commodity prices have increased, and some indicators o...