Analyst: The Federal Reserve may pause interest rate cuts this year, and the possibility of resuming rate hikes cannot be ruled out
ChainCatcher news, according to Jinshi reports, Regan Capital analyst Skyler Weinand stated that the stronger-than-expected CPI report in January may prompt the Federal Reserve to pause interest rate cuts for the remainder of the year.
He said, "The Federal Reserve can only wait and see for now, hoping that economic indicators change to show more progress on inflation." "If consumer prices or inflation expectations rise further, the Fed's next move is likely to be an increase in short-term interest rates."
Weinand also mentioned that the "extreme uncertainty" surrounding President Trump's fiscal policy and how it will affect consumer prices is causing "extreme anxiety" for the Federal Reserve, making it more difficult for policymakers to cut rates in the short term.