Regarding interest rate cuts, the latest statements from Federal Reserve officials!
The latest remarks from Federal Reserve officials: no rate cut in May, potential action in June, but it depends on key data. Cleveland Fed President Mester explicitly ruled out the possibility of a rate cut in May, stating that whether a rate cut can occur in June depends on whether inflation and economic growth data are clear in the next two months. Several officials mentioned that Trump's tariffs and immigration policies create significant uncertainty, worrying that companies might lay off workers as a result; if the unemployment rate surges, it would support a rate cut.
The market reacted quickly: interest rate swap contracts showed the probability of a rate cut in June spiked to 65%, U.S. stocks rose for three consecutive days, with the S&P 500 rebounding over 2% (but still down 6.75% this year). Morgan Asset Management warned that the market is underestimating the strength of the rate cuts, predicting that the Federal Reserve may be forced to cut rates more aggressively.
Trump continues to pressure the Federal Reserve to intervene in the market, but reminds everyone to first understand the impact of policies before taking action; the current strategy is "stay patient and be ready to strike quickly at any time".
