Fed mouthpiece: The Fed is expected to pause rate cuts, and the path to resuming rate cuts remains unclear.

On January 27, Nick Timiraos, a Wall Street Journal reporter often referred to as the "Federal Reserve's mouthpiece," stated that Federal Reserve officials are expected to keep interest rates unchanged this week for the first time since three consecutive rate cuts in September of last year. The question is, what would prompt the Fed to cut rates again? The answer depends on which of the following risks materializes first: a collapse in the labor market, or a significant decline in inflation towards the 2% target level. Neither has occurred since the last meeting in December. As a result, even with significant political pressure from the White House, the committee remains on the sidelines. Most officials still believe a rate cut is possible later this year, but there is disagreement on when data will support it.