Market analysis: The possibility of the Federal Reserve cutting interest rates in March is unlikely, and it is expected to remain unchanged for the whole year
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星球日报|Feb 13, 2025 02:05
Odaily Planet Daily News: According to analysts at Nomura Securities, the possibility of the Federal Reserve cutting interest rates in March is unlikely. They now believe that the Fed will remain inactive throughout 2025. David Seif et al. wrote that although US economic activity is expected to remain strong in the short term, it may slow down due to the Trump administration's aggressive trade policies. Analysts say that tariffs will drag down US consumer spending, and policy uncertainty will have a negative impact on business investment. Due to the inflation caused by tariffs, the weakening of the Federal Reserve's policy easing may suppress the recovery of the real estate market. They believe that once the inflation caused by tariffs passes, the Federal Reserve may resume loose policies in the second quarter of 2026. Their views face risks including milder trade policies or the Federal Reserve ignoring inflation driven by tariffs. (Golden Ten)
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