Barclays: The risk leans towards the Federal Reserve delaying interest rate cuts this year

ChainCatcher news, according to Jinshi reports, the Federal Reserve is expected to keep the policy interest rate unchanged this week, but Barclays economists warn that the impact of tariff shocks may be more severe than indicated in the FOMC's Summary of Economic Projections (SEP). They stated in a research report: "We believe that the risks this year tend to delay interest rate cuts." Barclays expects the Fed's SEP to show rising inflation and unemployment rate expectations, along with a decline in GDP growth rate, but Barclays economists anticipate that the extent of GDP slowdown and inflation increase will be greater than indicated in the SEP. They added: "Although we expect the SEP to show that the benchmark interest rate will be lowered once this year, we still believe that the committee will ultimately cut rates twice this year in June and September, each by 25 basis points."