Recent statements from Federal Reserve officials indicate that the sharp interest rate hikes implemented over the past two years are expected to take longer than previously anticipated to curb inflation. This suggests that there may be few, if any, rate cuts in the current year. Meanwhile, underlying US inflation is believed to have moderated for the first time in six months, offering a potential positive shift in economic conditions. However, June is ruled out for a rate cut, with the Consumer Price Index (CPI) data set to release on Wednesday potentially influencing future decisions. Market expectations are currently set on the first rate cut in September, followed by a possible second in December, but these could change based on the upcoming inflation data.