Fed minutes may provide more clues on timing of rate cuts

Odaily News Barron's reported that the Fed has signaled that it is in no rush to cut rates further as inflation remains high. Investors will look to the minutes of the Fed meeting for clues as to how long interest rates can remain at current levels. President Trump's new fiscal policies of deregulation, tax cuts and potential stimulus could boost economic growth, further reducing the need for continued rate cuts. In addition, both tariffs and immigration policies could exacerbate inflation in the short and long term. "The Fed is sitting comfortably waiting for clarity on its next policy move," said BNP Paribas strategists.
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)