Analysts: The Federal Reserve may cut interest rates only when the employment weakness data appears

Analysts at Metzler believe money markets may be overly optimistic about the Fed cutting rates this year. Metzler stuck to its forecast that the Fed will cut rates twice in 2025 and now expects the next easing to come only in July, largely due to the continued strength of the US labour market.
According to LSEG data, the money market expects three rate cuts in 2025. Analysts expect Powell to focus on price stability in his press conference. Rising inflation expectations, in particular, are currently causing concern for monetary authorities. A rate cut is only possible if the weakness in the U.S. economy is reflected in the labor market. (Golden Ten)