Federal Reserve meeting minutes could provide more clues about the timing of a rate cut

BlockBeats News, February 19th: Barron's reported that the Federal Reserve has hinted that it is not in a hurry to further cut interest rates due to ongoing high inflation. Investors will look for clues in the Fed meeting minutes to see how long rates can stay at the current level. President Trump's new fiscal policy, including deregulation, tax cuts, and potential stimulus measures, may promote economic growth, further reducing the need for further rate cuts. In addition, tariffs and immigration policies could exacerbate inflation in the short and long term. A strategist at Farabanc Bank stated, "The Fed is comfortably waiting for the next policy move to become clear."

CME FedWatch shows that the probability of a rate cut in June is currently close to 50%. This may also be seen as an aggressive expectation. Blake Gwinn, Head of U.S. Rates Strategy at BMO Capital Markets, said the Fed may stand pat for the rest of the year and did not rule out the possibility of the Fed raising rates again if inflation resurges. (FX678)