Strategist: A Few Federal Reserve Officials May Adjust This Year's Rate Cut Expectations, Enough to Shift the Landscape

BlockBeats News, June 18, Matthew Ryan, the Head of Market Strategy at financial services company Ebury, stated that the Federal Reserve's forecast of two rate cuts in 2025 remains the baseline expectation for most policymakers. Given the significant uncertainties around tariffs, they may lack sufficient confidence to substantively change their views.

However, there is a risk that a minority of officials might view this year's rate cut expectations as lower than previously anticipated, which could be enough to shift the outlook towards a single 25 basis point rate cut in 2025. A hawkish dot plot and Powell’s emphasis on the lack of urgency in reducing rates could provide the dollar with some room for strength in the latter half of this week. (Jin10)