The Federal Reserve's megaphone: Inflation is stronger than expected three times, and the dream of interest rate cuts is gradually fading away

Thursday's economic activity report is the latest wake-up call for investors and Fed policymakers, who have been holding their breath in the hope that falling inflation will allow them to officially start cutting interest rates this summer, according to a recent article by Nick Timiraos, "the Fed's mouthpiece." The data show that US inflation has been more stubborn than expected for the third month in a row, after a perfect cooling in the second half of last year. Individual economic growth and price data so far this year have not been enough on their own to significantly change the Fed's outlook. But the cumulative impact of these consecutive disappointing data is significant. In particular, inflation data have been stronger than expected, with revisions to inflation data increasing in follow-up reports in recent months. The trend has prompted investors and Federal Reserve officials to reconsider whether this year's rate cut is appropriate.