Fed Holds Rates as Inflation Cools to 3.1%
The Federal Reserve signalled continued patience on rate cuts despite inflation cooling to 3.1%, citing need for more data.
By Omar Farouk
Finvexx · 19 May 2026
⏱ 1 min read· 150 words
The Federal Reserve signalled continued patience on rate cuts despite inflation cooling to 3.1% annually. Chairman Powell stated the bank needs more good data before gaining sufficient confidence to cut from the current 23-year high of 5.25-5.50%. Futures markets shifted to price in just one or two cuts this year from earlier expectations of three. The 10-year Treasury yield rose 8 basis points to 4.42%. equity markets ended flat while gold pulled back modestly. The Fed's patience is driven by persistent services inflation even as goods price pressures have largely eased.
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Omar Farouk
Finvexx · Policy
Omar Farouk at Finvexx delivers expert analysis and breaking coverage across global markets, trade intelligence, and business strategy — combining deep industry expertise with rigorous reporting standards to provide actionable intelligence for business leaders worldwide.
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