Institutions: The Federal Reserve Is Not Rushing to Ease Policy, but a Rate Cut in September Remains Possible

Allspring analyst Matthias Scheiber stated that due to ongoing uncertainty surrounding tariffs and the continued strength of the US labor market, the Federal Reserve has adopted a widely expected "wait-and-see" approach on interest rates. The head of multi-asset solutions commented, "From our perspective, the next possible window for a Fed rate cut will be in September." Allspring anticipates that if inflation continues to move toward the 2.0% target level, the Federal Reserve may cut rates twice this year.