Odaily Planet Daily News Barron's reported that the Federal Reserve has hinted that it is not in a hurry to cut interest rates further due to continued high inflation. Investors will look for clues in the minutes of the Fed meeting to see how long interest rates can remain at current levels. President Trump's new fiscal policy, namely deregulation, tax cuts and potential stimulus measures, may promote economic growth and further reduce the need for continued interest rate cuts. In addition, both tariffs and immigration policies may exacerbate inflation in the short and long term. "The Fed is sitting comfortably waiting for the next policy move to become clear," said strategists at BNP Paribas.
CME Fed Watch shows that the probability of a rate cut in June is currently close to 50%. This may also be an aggressive expectation. Blake Gwinn, head of U.S. interest rate strategy at RBC Capital Markets, said the Fed may stay put for the rest of the year, and he did not rule out the possibility of the Fed raising interest rates again if inflation returns. (Jinshi)