Analyst: Expects Fed to Hold Off Next Rate Cut Until June

BlockBeats News, January 29th, Investec analyst Ryan Djajasaputra pointed out that the message conveyed by Powell seems to suggest that the Fed is not in a hurry to adjust its policy in the short term. Powell emphasized that the current policy does not appear to be overly tight, while also highlighting the strong performance of the U.S. economy.

Furthermore, Powell clearly stated that the Fed would like to see more progress in inflation returning to target levels. With commodity prices continuing to rise, Powell attributed this mainly to the upward effect of tariffs. Analysts believe that the implication is clear, indicating that the Fed may enter a rate cut pause period, with the next 25 basis point rate cut expected to wait until June. (FXStreet)