Commerzbank Economist: Fed Unlikely to Rush Further Rate Cuts

According to ChainCatcher, citing Jinshi, Christoph Balz, an economist at Commerzbank, stated in a recent report that, given the current favorable economic and labor market conditions, the U.S. Federal Reserve is unlikely to move quickly toward additional interest rate cuts.
Balz noted that while job growth remains relatively weak, there are emerging signs of stabilization in the unemployment rate, suggesting that U.S. monetary policy is no longer restrictive. He added that the current policy rate appears to be closer to the upper end of the neutral interest rate range, reducing the urgency for further easing.
The report also pointed out that Federal Reserve Chair Jerome Powell may conclude his term in May, which could further contribute to a cautious policy stance. According to Balz, the Fed is unlikely to implement another rate cut during this period, opting instead to assess economic data and policy continuity.
The analysis reinforces expectations that the Federal Reserve will maintain a data-dependent and patient approach, as markets continue to recalibrate interest rate outlooks amid evolving macroeconomic signals.