Institutions: The Fed Is Not in a Hurry 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 U.S. labor market, the Federal Reserve has adopted a widely expected "wait-and-see" approach regarding interest rates.

The head of multi-asset solutions said, "From our perspective, the next possible window for a Fed rate cut will be in September." Allspring expects that if inflation continues to move toward the 2.0% target, the Fed may cut rates twice this year.