Now everyone is guessing when the Federal Reserve will start cutting interest rates?
Currently, there are two possibilities: if the economy significantly declines in 2025, the Federal Reserve may cut rates more than twice in a year to stimulate the economy. However, if the U.S. economy remains stable, the Federal Reserve may only cut rates 1-2 times, or even less, to control inflation. The key date is the Federal Reserve's meeting on June 18, where Powell will release the dot plot, indicating the expected number of rate cuts for the year. According to the CME FedWatch Tool, the probability of a rate cut in June is only 8.3%, rising to 34.2% in July, and up to 51.5% in September, indicating that the market generally expects a rate cut to occur in September.
