Institutions: The Threshold for Further Fed Rate Cuts Is High

Odaily News BeiChen Lin, Senior Investment Strategist at Russell Investments, stated that the fundamentals of the U.S. economy remain solid, which implies that the threshold for the Federal Reserve to implement further interest rate cuts is likely to be high. It is anticipated that there might be only one rate cut in the second half of this year, or possibly no cuts until 2027. Considering that even though energy prices might temporarily push inflation higher, the balanced labor market and suppressed housing inflation set a cap on the upside potential for inflation, the likelihood of a rate hike this year is not significant. It is expected that the Federal Reserve will keep interest rates unchanged this time, and any hints from Powell regarding the future path of interest rates will be crucial. (Jin10)