Pufin Group: The Federal Reserve (FED) is unlikely to cut interest rates in the near future.

On June 10, Tim Murray, a strategist at Puxin Group, said that the Federal Reserve will continue to hold its nerve until tariff-related uncertainty subsides or the labor market deteriorates significantly. Murray does not expect a “Fed put” anytime soon, i.e., a Fed rate cut to bail out the market. Fed policymakers know that lowering interest rates is not a cure for uncertainty. The Fed is also reluctant to cut interest rates, given the risk that tariffs will push inflation higher. Murray expects the Fed to stick to its data-dependent approach, refrain from providing forward guidance, and refrain from sending any “political messages.”