Jefferies: Wash's signal about inflation pressure is being closely watched.

Jefferies' Mohit Kumar stated in a report that if Federal Reserve Chair Kevin Wash talks about potential inflation easing pressures outside of war, this could be a signal that a rate cut is possible. The global economist said that besides war, AI and technology are the biggest supply-side shocks to the system. He said that AI should lead to a decrease in employment and inflation, but will also bring better productivity and growth. Kumar said, "If the system is shocked, leading to a decrease in employment and slower growth, the Fed should respond with a rate cut." Wash is set to make his first appearance as chair at the meeting on Wednesday, with the Federal Reserve expected to keep the federal funds target rate unchanged at 3.50%-3.75%.