Analysts: The Fed's subsequent rate cuts will be extremely challenging in terms of communication
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最新报道：According to a report by Bijie.com, Tom Graff, Chief Investment Officer at Facet, stated that the Federal Reserve is clearly in a difficult position. Logically, they expect the new tariffs to lead to some inflation, and ideally, the Fed would prefer to wait until inflation peaks before considering a rate cut. However, pressure is growing. Even without external pressure from the White House, the recent weakness in the labor market is sufficient to worry the Fed. In fact, this is likely why Waller and Bowman voted against holding interest rates steady at the meeting and advocated for a rate cut. I believe this decision lays the groundwork for the Fed to initiate rate cuts at its September meeting, with the possibility of one or two more cuts this year. The problem is that the Fed needs to initiate rate cuts despite the potential for rising prices, which will be extremely challenging to communicate. Trump's continued pressure on interest rates further exacerbates this communication difficulty. Powell could then be seen as capitulating to Trump's demands. However, if job growth continues to weaken, the likelihood of a recession will increase, and Powell will no longer be able to ignore it.
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