Strategy: A minority of Federal Reserve officials may lower their expectations for rate cuts this year enough to reverse the situation.
Meta Era News, on June 18 (8+UTC), stated Matthew Ryan, Head of Market Strategy at Ibori Financial Services, that two rate cuts by the Federal Reserve in 2025 remain the baseline expectations for most policymakers. Due to the significant lack of confidence regarding tariffs, they may not have enough confidence to change their views significantly. However, there is a risk that a minority of officials may believe that rate cuts this year will be smaller than previously expected, which could be enough to shift expectations toward a cut of only 25 basis points in 2025. The hawkish chart and Powell's focus on the lack of necessity to cut rates may provide some room for an increase in the strength of the US dollar in the second half of this week.
