The Dream of Fed Rate Cuts Is Slipping Away By Hardika Singh

Investors continue to back away from rate-cut expectations after the latest GDP data. Meanwhile, the world's fourth-largest economy is stuck with ultraloose monetary policy long after the U.S. has changed course. Read on for this news and more.

Top News The Dream of Fed Rate Cuts Is Slipping Away

Thursday's report on economic activity delivered the latest in a series of rude awakenings to investors and Federal Reserve policymakers who have held their breath in anticipation that lower inflation would allow interest-rate cuts to begin in earnest this summer.

Trump Allies Draw Up Plans to Blunt Fed's Independence

Donald Trump's allies are quietly drafting proposals that would attempt to erode the Federal Reserve's independence if the former president wins a second term, in the midst of a deepening divide among his advisers over how aggressively to challenge the central bank's authority.

U.S. Economy Mix of Slowing Growth, Firm Inflation Worries Investors

The latest snapshot of the U.S. economy rattled stock and bond markets with two bits of potentially disappointing data: slower economic growth and still-firm inflation. Gross domestic product expanded at a 1.6% seasonally- and inflation-adjusted annual rate in the first quarter, the Commerce Department said Thursday, a pullback from last year's quick pace. That lagged behind the 2.4% projected by economists polled by The Wall Street Journal.

Financial Regulation What the End of Negative Rates Means for Japan

Japan's experiment with negative interest rates is finally over. The Bank of Japan raised rates last month for the first time since 2007, and abandoned a yearslong commitment to keep government bond yields close to zero. Japan was the last country to abandon its negative-interest-rate policy, which became a popular-and controversial-tool in the wake of the global financial crisis. The central bank has a two-day policy meeting this week.

Forward Guidance Friday (all times ET)

8:30 a.m.: PCE price index for March

10 a.m.: University of Michigan consumer survey for April, final

Monday

5 a.m.: EU business and consumer surveys for April

10:30 a.m.: EU business and consumer surveys for April

Research Home Prices in Florida, Texas Stagnate As Supply Soars

Home sales in Florida and Texas are stagnating as supply increases. On the west coast of Florida, housing supply is surging, sellers are cutting their asking prices and the time it takes to sell a home is soaring - all at a faster rate than anywhere else in the U.S. The story is similar in parts of Texas, Redfin says. Of the 10 metro areas that posted the largest year-over-year increases in supply, six are in Florida and two are in Texas. Of the 10 metro areas where sellers were most likely to cut their list prices, five are in Florida and two are in Texas. Individual home sellers are having a tough time attracting buyers in part because builders are offering big concessions. - Chris Wack

Basis Points The Tokyo Stock Exchange aims to attract listings from Asian startups , leveraging the market's recent ascent to record highs and positioning itself as a preferred fundraising destination for companies outside Japan. - Kosaku Narioka If you want a single number to capture America's economic stature , here it is: This year, the U.S. will account for 26.3% of the global gross domestic product, the highest in almost two decades. - Greg Ip Singapore's economy is expected to strengthen this year , but faces challenges sustaining growth as global and domestic cost pressures rise, said the city-state's central bank. - Fabiana Negrin Ochoa

and Amanda Lee The Bank of Japan left its interest-rate target unchanged , a month after it made its first rate increase in 17 years. - Megumi Fujikawa About Us

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ's global team of reporters and editors. This newsletter was compiled by markets reporter Hardika Singh in New York. Send your tips, suggestions and feedback to [hardika.singh@wsj.com].

This article is a text version of a Wall Street Journal newsletter published earlier today.


(END) Dow Jones Newswires

04-26-24 0715ET