TechFlow, August 6 — According to Jinshi Data, Chris Brigati, Chief Investment Officer at SWBC, stated that he remains skeptical about the Federal Reserve cutting interest rates this year. The most likely scenario is a single rate cut, or even no cuts at all. The Fed has maintained strong consistency in its policy communication and continues to exercise cautious patience in its decision-making process. This week, Trump will have the opportunity to appoint a new Federal Reserve governor, which could shift the internal voting composition of the Fed.
Brigati added that his primary concern regarding rate cuts continues to center on persistent inflation stickiness. The Fed has repeatedly emphasized its high level of concern over sticky inflation. Although it previously downplayed the significance of employment data, its stance appears to have softened recently. However, unless there are clearer signs of deterioration in the labor market, any rate cuts would be very limited. Currently, the only available indicator is the latest nonfarm payroll data, but the real concern is that inflation may remain elevated or even worsen. If the Fed cuts rates while inflation remains high or rebounds, it would inevitably trigger a new policy dilemma.
