Pufin Group strategist: The Federal Reserve (FED) will continue to hold steady and will not cut interest rates to save the market in the short term.

Web3_Visionary · 2025-06-10T11:37:16+00:00

Tim Murray, a strategist at Puxin Group, said that the Fed 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."

Web3_Visionary

2025-06-10 11:37:16

The strategist Tim Murray of the Pufin Group stated that the Federal Reserve will remain on hold until uncertainties related to tariffs dissipate or there is a significant deterioration in the labor market. Murray does not expect “Federal Reserve put options” to appear in the short term, meaning the Federal Reserve will not cut interest rates to rescue the market. Policymakers at the Federal Reserve know that lowering interest rates is not a good solution to uncertainties. Considering the risk that tariffs will push up inflation, the Federal Reserve is also reluctant to cut interest rates. Murray expects the Federal Reserve to stick to its data-dependent approach, avoiding forward guidance and not sending any “political messages.”

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

22 Likes