Analyst: The Fed May Not Cut Rates Until Autumn

BlockBeats News, February 13th, MainSky Asset Management analyst Eckhard Schulte stated that the slow progress of U.S. inflation may mean that the Federal Reserve will not cut interest rates until autumn, or may not cut them at all this year. "This is not our core scenario, but in the end, it will not create a new 'market static,'" Schulte said.

The inflation data for January in the United States was higher than expected, prompting a knee-jerk reaction in the U.S. Treasury market and causing yields to rise. Schulte stated that this situation only occurs when the Federal Reserve discusses possible rate hikes. "However, as long as inflation does not deteriorate significantly in the coming months, this situation will not arise." (FX678)