Wall Street pushes out rate-cut expectations, sees risk they don't start until March 2025

- Economists and strategists see the Federal Reserve waiting until at least September to cut interest rates and are considering the possibility of no reductions at all this year - Powell stated there has been a lack of progress in lowering inflation and there won't be interest rate reductions anytime soon - Market pricing for rate cuts has been volatile, with traders pricing in about a 71% probability of a rate cut in September - Bank of America economists believe there is a real risk that the Fed won't cut until March 2025 at the earliest - Citigroup expects the Fed to begin easing in June or July and cut rates several times this year - A policy mistake by the Fed could threaten labor market stability and the finance sector - The Fed should have started cutting rates with inflation well off its highs from mid-2022, and a policy mistake is the most significant risk to the economy according to economists