JPMorgan Chase: Inflation expectations and macro data show that the Fed is unlikely to cut interest rates in the near future

Odaily Planet Daily News JPMorgan analysts said that as the Federal Reserve kicks off its May policy meeting this week, there is little chance that the central bank will cut interest rates, and the likelihood of a rate cut at subsequent meetings is also low. Fed officials are constrained in monetary policy for the following reasons: 1. Rising inflation expectations, JPMorgan said the inflation outlook is one of the reasons why the Fed will not cut interest rates at this time. The latest consumer inflation report showed that inflation rose 2.4% year-on-year in March, above the Fed's 2% target. This figure is still quite low compared to what may happen in the future: the one-year inflation forecast compiled by the University of Michigan is 6.5%. 2. The data has not yet shown the need for a rate cut, and although soft data such as future inflation expectations may eventually cause problems for investors, at least for now, the encouraging hard data has masked this problem. The latest macroeconomic data continues to remain strong and even relatively strong in some aspects. The unexpectedly positive April non-farm payrolls report last Friday boosted investor confidence and drove the stock market higher. (Jinshi)