The Federal Reserve is expected to cut interest rates three times this year
Analyst Adam Button pointed out that the current trade environment is full of challenges, and developing interest rate policies is equally difficult. Although the Federal Reserve has not yet shown more dovish tendencies, St. Louis Fed President Bullard warned yesterday of the downside risks faced by the economy, paving the way for rate cuts by the Federal Reserve.
Federal Reserve officials have repeatedly made statements of 'wait and see' and emphasized their desire to consider rate cuts only after the inflation rate reaches 2%. However, the market has not waited for stronger signals and has raised its expectations for easing by the Federal Reserve this year from 40 basis points to 80 basis points.
Although the possibility of a rate cut at the March meeting remains low, the probability of a rate cut at the May meeting has exceeded 50%. In the longer term, expectations for the terminal rate have been lowered by about 50 basis points.
