CICC: The Federal Reserve hinted that it could have cut interest rates long ago if it weren't for tariff risks

ChainCatcher message, the CICC research report indicates that Federal Reserve Chairman Powell emphasized the word "uncertainty" the most during this meeting, highlighting that a considerable part of the variables comes from the randomness of tariff policies. Overall, the weakening of growth (but not much recession pressure) and the rising inflation risks (mainly due to tariff disruptions) have had a mutually offsetting effect, leading the Federal Reserve to maintain its expectations for interest rate cuts for the year. This also implies two layers of meaning: first, if it weren't for tariff risks, the Federal Reserve could have cut rates long ago; second, if tariffs are significantly reduced, it will force the Federal Reserve to delay the timing of rate cuts, so currently, the focus remains on waiting and observing.