Analyst: The Fed's subsequent interest rate cuts are extremely challenging in terms of communication
ChainCatcher news, according to market news, Facet's Chief Investment Officer Tom Graff stated that the Federal Reserve is clearly in a tricky position. Logically, they expect new tariffs to bring a certain degree of inflation, and ideally, the Federal Reserve hopes to wait until inflation peaks before considering interest rate cuts. However, pressure is mounting, and even without external pressure from the White House, the recent weakness in the labor market is enough to cause concern for the Federal Reserve.In fact, this is likely the reason why Waller and Bowman voted against maintaining interest rates at this meeting, advocating for a rate cut. I believe this decision lays the groundwork for the Federal Reserve to initiate rate cuts at the September meeting and possibly cut rates another 1 to 2 times within the year. The issue is that, despite the potential rise in prices, the Federal Reserve will still need to initiate rate cuts, which will be extremely challenging in terms of communication. Furthermore, Trump's ongoing pressure on interest rates exacerbates this communication difficulty.At that time, Powell may be seen as yielding to Trump's demands. However, if job growth continues to weaken, the likelihood of the economy falling into recession will continue to rise, and Powell will no longer be able to ignore this. (Jin Shi)