Fed's Mouthpiece: Fed Expected to Pause Rate Cuts, Path to Resuming Cuts Remains Unclear

Odaily News: "Fed's Mouthpiece" Nick Timiraos: Fed officials are expected to keep interest rates unchanged this week for the first time since the three consecutive rate cuts that began last September. The question is, what circumstances would prompt the Fed to restart rate cuts. The answer depends on which risk materializes first: a collapse in the labor market, or a significant decline in inflation towards the 2% target level. Since the last meeting in December, neither has occurred. As a result, despite significant political pressure from the White House, the committee remains in a wait-and-see mode. Most officials still believe a rate cut later this year is possible, but they are divided on when the data will support such a move. (Jin10)