The Fed's Decisions on Rate Cuts

Parts of the market are already pricing in rates cuts this year. What exactly is the reason? Right. This question about not only the peak for policy rates but also the prospect of rate cuts potentially later this year is a complicated one because it depends on the interaction of an FOMC that's still trying to bring inflation lower. Inflation has remained stubbornly elevated. But at the same time the policy makers are also considering a variety of risks. There are risks stemming from developments in the banking sector. And there are near term risks related to the current debt limit impasse. So it's this balance between these risks against the persistence of elevated inflation that's going to be the key driver of