Fed Speak: Fed Expected to Pause Rate Cuts, Resumption of Cutting Path Unclear

BlockBeats News, January 27th, Nick Timiraos, a reporter known as the "Fed Whisperer" at The Wall Street Journal, stated that Federal Reserve officials are expected to keep interest rates unchanged for the first time this week after three consecutive rate cuts since September last year. The question is, what would prompt the Fed to cut rates again. The answer depends on which of the following risks materializes first: a breakdown in the labor market or a significant drop in inflation towards the 2% target. Neither of these has occurred since the last meeting in December. As a result, despite immense political pressure from the White House, the committee remains in a wait-and-see mode. Most officials still believe that a rate cut later this year is possible, but there is disagreement on when the data will support a cut.