Lates News

Analyst Matthias Scheiber of Allspring stated that the job market is stabilizing, and strong inflation stickiness has led the Federal Reserve to choose to wait and assess the supportive effects of previous rate cuts on the US economic growth. The current interest rate level seems to be close to the neutral rate, which can both stabilize employment and help control inflation. However, the investment and capital expenditure boom driven by artificial intelligence, along with significant increases in commodity prices including industrial metals, may lead to a more sticky inflation path this year. The market has gradually digested one of the two expected rate cuts from the end of last year. The biggest focus will still be on the announcement of the new Federal Reserve Chairman. The competition remains open, but it is widely expected that the successor to Powell will be more dovish. Government pressure on the Federal Reserve to cut rates will continue to be a persistent theme this year.