The Fed is expected to pause its rate-cutting cycle this week and reestablish a certain degree of policy consensus.

The market generally expects that the Federal Reserve will pause its rate-cutting cycle this week. With the job market stabilizing and internal consensus forming within the central bank after months of increasing divergence on interest rates, several officials including some close to the Fed chairman have signaled that, after three consecutive rate cuts, the current level of interest rates is now at an appropriate position: able to support employment while continuing to put downward pressure on inflation. Senior U.S. economist Josh Hirt of Vanguard Group Inc. said that interest rates are basically within the range of the estimated neutral rate. The neutral rate he mentioned refers to the level at which interest rates neither inhibit nor stimulate the economy. He stated that this will bring a more cautious attitude and reduce the urgency for further rate cuts.