Fed to Remain Cautious on Rate Cuts Amid Persistent Inflation, Says William Lee

• William Lee, Chief Economist and MD at Global Economic Advisors, states that markets are contending with ongoing supply shocks, from the COVID-19 pandemic to various conflicts.
• Despite these challenges, global growth, particularly in the US, has demonstrated resilience.
• Lee warns that increasing uncertainty and disruptions in the energy sector could divert capital towards safer assets like treasuries, potentially impeding long-term economic growth.
• He suggests that while there might be political pressure in the US for a swift resolution, the Federal Reserve is expected to prioritize controlling inflation over implementing immediate rate cuts.