Federal Reserve's Potential Rate Cuts Expected to Be Aggressive

According to PANews, U.S. interest rate strategist Ira Jersey has indicated that the Federal Reserve will wait until the labor market weakens and concerns over tariff-related inflation subside before reducing interest rates. However, once the decision to cut rates is made, it is expected to be aggressive. Jersey suggests that the market may have incorrectly priced the timing of the rate cuts, but the extent of the cuts might be accurately assessed. It is anticipated that the Federal Reserve could lower rates to 3%, starting at the end of this year, with a rapid pace of reduction. Previously, Nick Timiraos, known as the 'Fed Whisperer,' noted that the April employment report has decreased the likelihood of a rate cut in June, despite the time remaining until then. This is because only one more employment report will be released before June. As it stands, this implies that the Federal Reserve does not need to make any statements regarding the June meeting in the upcoming week.