Analyst: The Federal Reserve may only cut interest rates when weak employment data emerges

ChainCatcher news, according to Jinshi reports, Metzler's analysts believe that the money market may be overly optimistic about the Federal Reserve's interest rate cuts this year. Metzler maintains its prediction that the Federal Reserve will cut rates twice in 2025, and now expects the next easing policy to be implemented only in July, mainly due to the continued strength of the U.S. labor market.

According to data from LSEG, the money market expects three rate cuts in 2025. Analysts expect Powell to focus on the issue of price stability during the press conference. In particular, the rising inflation expectations are currently raising concerns among monetary authorities. Rate cuts are only likely when the weakness in the U.S. economy is reflected in the labor market.