Analyst: Due to tariff risks, the Federal Reserve may postpone interest rate cuts

According to a report by Golden Finance, Alvin Liew, an economist at Dahua Bank, said that due to tariff risks, the Federal Reserve may postpone interest rate cuts. Federal Reserve Chairman Powell said that central bank officials are not in a hurry to adjust interest rates because "the cost of waiting is quite low," the economist said. Given that the Federal Reserve has expressed patience in strengthening warnings about the risks of rising inflation and unemployment caused by US tariffs, Dahua Bank continues to believe that there will be three interest rate cuts in 2025, each by 25 basis points. The economist said that Dahua Bank has postponed the expected schedule to its meetings in September, October, and December. Dahua Bank still believes that there will be two interest rate cuts in 2026, which means that the federal funds rate will drop to 3.25% next year.