TechFlow news, June 3 — According to Jinshi Data, Dutch ING economist Knightley said the Federal Reserve may not cut interest rates until December, but could opt for a large 50-basis-point reduction. The economist stated that due to the inflationary impact of tariffs, the Fed will not act immediately with rate cuts. However, the effect of tariffs on prices will be one-off, allowing the central bank to later stimulate an economic slowdown through rate reductions. Currently, money markets are pricing in a high likelihood of a rate cut by September. Nevertheless, Knightley added that the Fed might wait even longer, rather than opting for a larger rate cut in December.
Add to Favorites
Share to Social Media
