Analyst: Fed may delay rate cut due to tariff risks

Odaily Planet Daily News - UOB economist Alvin Liew said the Federal Reserve may delay rate cuts due to tariff risks. Federal Reserve Chairman Powell said central bank officials are in no hurry to adjust interest rates because "the cost of waiting is quite low," the economist said. Given that the Federal Reserve has expressed patience even as it intensifies its warnings about the risks of rising inflation and unemployment caused by US tariffs, UOB continues to believe that there will be three rate cuts of 25 basis points each in 2025. The economist said UOB has pushed back the expected timetable to meetings in September, October and December. UOB still believes that there will be two rate cuts in 2026, which means the federal funds rate will fall to 3.25% next year. (Jinshi)