The Federal Reserve has a high bar for further rate cuts, with only one rate cut expected in the second half of the year.

Mars Finance reports that according to Jin10, Russell Investment Senior Investment Strategist BeiChen Lin stated that the U.S. economy remains fundamentally stable, which means the threshold for the Federal Reserve to cut interest rates further could be quite high. It is expected that there may only be one rate cut in the second half of this year, or possibly none until 2027. Although energy prices may temporarily boost inflation, a balanced labor market and restrained housing inflation set upper limits on inflation’s upward potential. The likelihood of rate hikes this year is low. It is anticipated that the Federal Reserve will keep interest rates unchanged this time, and any hints from Powell about future rate paths will be crucial.

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