Barclays: If US inflation expectations get out of control, uncertainty about the Fed's interest rate path will increase
Barclays economists said that the Fed's interest rate path looks uncertain, and if there is evidence that inflation expectations are becoming unstable, the Fed may reduce or not cut interest rates this year. They wrote in a report that under stagflation pressure, the Federal Open Market Committee may be unwilling to cut interest rates significantly. However, they said that if the labor market weakens more noticeably, the transmission effect of tariffs on inflation is weaker, it may also lead to larger cuts. Barclays still expects the Fed to cut interest rates by 25 basis points in June and September this year. The institution expects another 25 basis point cut in June and September next year, depending on the FOMC seeing a significant slowdown in monthly inflation under reduced tariff-related pressure.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Trump turns on ‘buddy’ Putin over Ukraine, says he’ll slap Russia with sanctions now
Share link:In this post: Trump warned he may hit Russia with new sanctions after fresh missile attacks on civilians. Trump met with Zelenskyy in Rome and called the meeting productive, but gave no full details. Trump offered a peace deal that includes recognizing Crimea as Russian territory, which Zelenskyy rejected.
Trump’s economic and geopolitical failures took center stage at Pope Francis’ funeral
Share link:In this post: Trump’s economic and diplomatic tensions took over the spotlight at Pope Francis’ funeral. Trump met briefly with Zelenskyy, Macron, and Starmer during the service but made little progress. Trump skipped a second meeting with Zelenskyy and left Rome quickly after the Mass.
Elon Musk and Nobel laureates call for investigation into OpenAI’s nonprofit mission
Share link:In this post: Elon Musk called OpenAI restructuring plan the “scam of the century” after experts oppose it. Legal and AI experts have called on Attorneys General of Delaware and California to OpenAI core mission as a non-profit. Concerns about Open AI deviating from its non-profit origins is not limited to Musk.
Republicans propose shutting down US audit regulator PCAOB
Share link:In this post: Republicans plan to scrap the Public Company Accounting Oversight Board (PCAOB). The agency’s responsibilities could be pushed to the SEC if the lawmakers succeed in shutting it down. Republicans also want to pass a major tax bill that could change the non-profit sector.
Trending news
MoreCrypto prices
More
