TechFlow news, February 19 — According to Jinshi News, citing The Barron's, the Federal Reserve has signaled it is not in a rush to further cut interest rates due to persistently high inflation. Investors will look to the Fed's meeting minutes for clues on how long rates might remain at current levels. President Trump’s new fiscal policies—deregulation, tax cuts, and potential stimulus measures—could boost economic growth, further reducing the need for additional rate cuts. Moreover, both tariff and immigration policies could exacerbate inflation in both the short and long term.
“The Fed is comfortably sitting back, waiting for clarity on the next policy move,” said strategists at BNP Paribas. CME FedWatch shows the probability of a rate cut by June is currently close to 50%, though this may be an aggressive assumption. Blake Gwinn, Head of U.S. Interest Rate Strategy at RBC Capital Markets, said the Fed could stay on hold for the remainder of the year, and he hasn’t ruled out the possibility of rate hikes if inflation reemerges.
