Analysts at JPMorgan predict the Federal Reserve will hold off on reducing interest rates during its May meeting, with further cuts likely limited to future events. A number of factors are influencing this decision. First and foremost, inflation expectations continue to rise, according to Odaily reports. The latest consumer price index saw a year-on-year increase of 2.4% in March, surpassing the Federal Reserve’s target of 2%. While relatively low compared to potential future scenarios, the University of Michigan’s one-year inflation expectation stands at 6.5%. Second, current economic indicators do not suggest a need for rate cuts. While soft data such as future inflation expectations could present challenges for investors in the long run, recent hard data, such as the unexpectedly positive April non-farm employment report, is currently driving investor confidence and pushing stock market gains higher.