Fed’s Monetary Policy Outlook
According to Odaily, Neil Dutta from Renaissance Macro suggests that the Federal Reserve has taken a dovish stance in its latest policy decision. The central bank has expressed concerns that tariffs could negatively affect economic growth, employment, and inflation.
Despite an upward revision of the core inflation forecast by 0.3 percentage points, the median interest rate projection remains unchanged, signaling expectations of two rate cuts before the year’s end.
Future Rate Cut Possibilities
Should core inflation fall below the Fed’s current projection, there could be potential for additional rate cuts between 2025 and 2026. This aligns with the Fed’s approach to balancing economic stability while monitoring inflation trends and tariff-related risks.
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