Inflation still has not cooled down, and I think the Fed will not start considering interest rate cuts until the second half of 2025. If interest rates are cut this year, inflation will rise again
According to the FedWatch tool, investor confidence in the Fed cutting interest rates fell to 62.5% from previously above 80%, but previously the Fed was likely to cut interest rates in September at least once this year.
In today's FOMC meeting minutes, the market estimates that the Fed will cut interest rates in September. Data from the FedWatch tool now shows 64% believe the Fed will cut interest rates by 25 bps and 36% believe the Fed will cut interest rates by 50 bps.
You're right-cutting interest rates too soon could fuel inflation. The Fed is likely to wait until inflation is more under control before considering rate cuts. Premature cuts could risk pushing inflation back up, which would undermine economic stability and recovery efforts.
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