PIMCO: Inflation report gives Fed reasons to cut interest rates twice this year.

Tiffany Wilding, economist at Pacific Investment Management Company, stated that the inflation report "looks quite encouraging on the surface," with two main positive developments. Firstly, the continuous rise in housing prices since the outbreak of the pandemic is now indeed slowing down. Secondly, the impact of tariffs is gradually diminishing. As this trend fades, the Federal Reserve should be more willing to cut interest rates. We believe it is reasonable for the Fed to cut rates twice more this year.