The US Fed Is Not in a Hurry to Cut Interest Rates Further; Spot Market Transactions Slightly Increased [SMM Tin Morning Brief]
The minutes of the US Fed meeting revealed that the Fed wants to see "further progress on inflation" before deciding on another interest rate cut. Citing rising inflation pressure, the Fed kept rates steady at the 4.25%-4.5% range during the last meeting, and the market expects no interest rate cut in the March meeting either. According to the minutes, the committee unanimously agreed that "the Fed has ample time to assess the evolving outlook for economic activity, the labour market, and inflation." Many economists and market strategists are concerned that tariffs and stricter immigration policies could increase inflation pressure, potentially offsetting the positive effects of tax cuts and deregulation. The Fed has previously indicated that it is not in a hurry to cut interest rates further due to persistently high inflation. Inflation has fallen back from highs seen after the pandemic but remains stubbornly above the Fed's desired level.
