Analyst: The Federal Reserve may still cut interest rates later this year

According to a report by Golden Finance, Michele Raneri, Vice President and Head of US Research and Consulting at Transunio, stated that despite the relatively optimistic recent CPI data, the market consensus prior to today's decision was that the Federal Reserve would not cut interest rates. This expectation is indeed correct. However, the above-mentioned CPI data and other indicators, as well as the upcoming unemployment rate data, may still lead the Federal Reserve to consider interest rate cuts later this year, and there may still be multiple interest rate cuts in 2025. When interest rates really start to decrease, this may incentivize consumers to revisit credit products they have been reluctant to use in the past few years. This includes mortgage products used for purchasing and refinancing, as well as the automotive market. A more favorable lending environment may lead to new lending activities and consumer confidence.