Institution: The threshold for further Fed rate cuts is very high

Odaily Planet Daily reports that BeiChen Lin, Senior Investment Strategist at Russell Investments, stated that the U.S. economy remains fundamentally solid, which means the threshold for the Federal Reserve to cut interest rates further could be quite high. It is expected that there will be only one rate cut in the second half of this year, and possibly no cuts until 2027. Although energy prices may temporarily boost inflation, the balanced labor market and restrained housing inflation set upper limits on inflation’s upward potential. The likelihood of rate hikes this year is low. It is anticipated that the Federal Reserve will keep interest rates unchanged this time, and any hints from Powell about future rate paths will be crucial. (Jin10)