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Federal Reserve to Maintain Cautious Approach on Interest Rate Cuts, Not Expected to Cut Rates Significantly
Summary: According to sources, a recent report from Zhongjin Research indicated that the market's pricing of Federal Reserve interest rate cuts has increased significantly. However, there is internal disagreement within the Federal Reserve, with some members supporting rate cuts and others advocating a wait-and-see approach. Despite pressure from President Trump and Treasury Secretary Mnuchin to cut ...
According to sources, a recent report from Zhongjin Research indicated that the market's pricing of Federal Reserve interest rate cuts has increased significantly. However, there is internal disagreement within the Federal Reserve, with some members supporting rate cuts and others advocating a wait-and-see approach. Despite pressure from President Trump and Treasury Secretary Mnuchin to cut rates, Zhongjin believes that current conditions do not support a significant rate cut. The biggest risk facing the US currently is 'stagflation', which rate cuts cannot solve. Monetary policy should focus on stabilizing inflation, and the Federal Reserve will maintain a cautious approach to interest rate decisions.
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Link: Federal Reserve to Maintain Cautious Approach on Interest Rate Cuts, Not Expected to Cut Rates Significantly [Copy]
