Allison Boxer
The Federal Reserve cited increasing risks to the U.S. labor market as a reason to ease monetary policy.
The Federal Reserve offered little guidance on the outlook at its July meeting, striking a somewhat hawkish tone.
Fed Policymakers: Split Decision
We expect the Fed will resume gradual interest rate cuts later this year, depending on U.S. labor market trends.
Fed officials remain patient, likely awaiting hard evidence of a weaker U.S. labor market before considering rate cuts.
Mounting risks to growth and inflation have the Federal Reserve taking a cautious approach to monetary policy.
Fed Sees No Need to Hurry
Facing an uncertain outlook, the Federal Reserve holds rates steady and signals a watch-and-wait approach.
Macroeconomic uncertainties prompted the Federal Reserve to signal a slower pace of policy rate cuts in 2025 and beyond.
Recent economic data support the Federal Reserve’s meeting-by-meeting approach to rate cuts.
We believe the Fed is on a path to continue to cut rates over the next several meetings to realign monetary policy with a now more “normal” U.S. economy.