Fed Diverges From Global Peers in New Era of Higher for Longer

The Federal Reserve’s move to signal fewer interest-rate cuts this year deepens its divergence from peers who have already begun to ease.

The message from the Fed was two-fold: Not only are officials now only anticipating one rate cut this year, compared to the three they projected as recently as March, but they also see its easing cycle bottoming out at a higher level than previously expected, underscoring the era of higher rates is set to stay.

Source: Source: Bloomberg

That’s in contrast with the Bank of Canada, which lowered its benchmark overnight rate by 25 basis points to 4.75% last ...