Analyst: Fed Pushes Market's First Rate Cut Expectation to No Earlier Than September

BlockBeats News, June 19th, according to The Block, BRN's Chief Analyst Valentin Fournier stated that despite easing inflation and reduced tariff concerns, the slowing U.S. economic growth has raised concerns about stagflation. During a post-meeting press conference, Federal Reserve Chair Jerome Powell expressed confidence in the "inflation downturn trend," with a dovish tone. However, he also pointed out that strong job growth and resilient consumer spending have provided policymakers with room to maintain high interest rates.

The market is currently looking towards September as the earliest possible time for a rate cut. "Due to the lack of urgency for a rate cut, the Fed reiterated its 'wait-and-see' attitude, delaying market expectations for the first rate cut to no earlier than September."