Fed Likely To Pause Rate Cuts Mid-Next Year Amid Economic Conditions

According to Odaily, Minsheng Securities has indicated that the likelihood of the Federal Reserve pausing interest rate cuts by mid-next year is increasing. The persistent low unemployment rate, coupled with obstacles in reducing inflation, suggests that the Federal Reserve might implement two to three rate cuts next year. However, there is a possibility that these cuts could be paused in the latter half of the year. In a less likely scenario, aggressive tariff and immigration policies could lead to a downturn in the U.S. stock market and a significant decline in the American economy. Should this occur, it may necessitate additional rate cuts next year. The economic landscape remains uncertain, and the Federal Reserve's actions will be closely monitored as they navigate these challenges.