JPMorgan Chase: Inflation expectations and macroeconomic data indicate that it is almost impossible for the Federal Reserve to cut interest rates in the near future

Odaily Planet Daily News: Morgan Stanley analysts say that as the Federal Reserve kicks off its May policy meeting this week, it is almost impossible for the central bank to cut interest rates, and the likelihood of a rate cut in subsequent meetings is also low. Federal Reserve officials are constrained in monetary policy for reasons including: 1. Inflation expectations have risen, and JPMorgan Chase stated that the inflation outlook is one of the reasons why the Federal Reserve is not currently cutting interest rates. The latest consumer inflation report shows that inflation in March increased by 2.4% year-on-year, exceeding the Federal Reserve's target of 2%. Compared to possible future scenarios, this number is still quite low: the one-year inflation expectation compiled by the University of Michigan is 6.5%. 2. The data has not yet shown the necessity of interest rate cuts, although soft data such as future inflation expectations may ultimately pose problems for investors, at least for now, encouraging hard data is masking this issue. The latest macroeconomic data continues to remain strong, and in some aspects, it even performs relatively strongly. The unexpectedly positive April non farm payroll report last Friday boosted investor confidence and pushed the stock market up. (Golden Ten)