Federal Reserve Monitors Inflation Expectations Closely

According to Odaily, analysts from LBBW have indicated in a report that the Federal Reserve is closely monitoring inflation expectations to prevent them from spiraling out of control. This aligns with the perspective of Deutsche Bank analysts, who believe that the Federal Reserve is unlikely to lower interest rates again before the end of the year. They noted that if inflation risks are considered, a future rate hike could lead to a significant increase in the yields of long-term U.S. government bonds.