Expert Insight: Fed May Postpone Next Rate Cut to June

Fed Policy Outlook Analysis

Investec analyst Ryan Djajasaputra recently commented that Fed Chair Powell has sent clear signals that the central bank is in no rush to adjust monetary policy in the near term. Powell emphasized that current interest rates are not overly restrictive and highlighted the resilience of the US economy.

Inflation and Commodity Prices

He also noted that the Fed wants to see further progress in bringing inflation down to its target level. While commodity prices continue to rise, Powell attributed this trend mainly to the upward pressure from tariffs.

Expectations for Future Rate Cuts

Analysts suggest that the signs point to the Fed entering a period of caution regarding rate cuts. At this stage, market expectations indicate that the next 25-basis-point rate cut may not occur until June.