Will the Federal Reserve 'pull a big move' after Powell's departure? Institutions warn: rate cuts may accelerate, tariff costs may be passed on to consumers
The pace of rate cuts by the Federal Reserve may be hiding uncertainties.
The latest analysis from the well-known institution Monex USA points out that once Powell's term at the Federal Reserve comes to an end, the U.S. central bank's rate-cutting pace may significantly accelerate. This prediction undoubtedly injects new uncertainty into the market — the extent of the shift in monetary policy may far exceed current expectations.
What’s more concerning is that the transmission path of tariff costs has gradually become clear. Analysts believe that U.S. companies are highly likely to pass this additional expense onto end consumers, which means that the wallets of ordinary people may face new pressures.
On one hand, there may be 'increased' rate cuts, and on the other, the potential rise in living costs; the next steps of the U.S. economy are pulling the nerves of the global market.