Analysis: Fed rate cut may not reverse US economic slowdown

The U.S. Federal Reserve has announced a 25 basis point interest rate cut and continued balance sheet reduction. This is the first rate cut by the Fed since December 2024, and two more rate cuts are expected this year. Some analysts point out that one of the main considerations for the Fed's rate cut is the downward pressure from weak employment. The Fed's "dual mission" of combating inflation and maintaining employment is undergoing a fine-tuning of its focus, with stabilizing employment becoming a key priority. However, due to the continued negative impact of policies such as tariffs and immigration on business and consumer confidence, the U.S. economy may find it difficult to reverse its overall slowdown. Furthermore, the combined effects of rate cuts and tariffs could make achieving the Fed's goal of controlling inflation even more difficult. (Jinshi)