According to ChainCatcher, the Federal Reserve is expected to maintain the current interest rate level in its latest resolution this week. The market's focus will be on whether the Federal Reserve will signal any timing for future interest rate cuts.
Recently released CPI and PPI data were weaker than expected, prompting market participants to adjust their expectations for the next interest rate cut. The money market has fully priced in the possibility of a rate cut in October this year, with an even higher probability of action in September.
Previously, the market generally expected a rate cut in December. Citi analysts pointed out that the market might be underestimating the risk of a rate cut. However, US tariff increases could push up inflation, and if tensions between Iran escalate, leading to continued oil price rises, this could further delay the Federal Reserve's interest rate cut timeline.
Allianz analysts stated that against the backdrop of high inflation, the Federal Reserve is unlikely to rashly relax its monetary policy.
