Fidelity International: Expected two more rate cuts in the US this year, future Fed response may increase difficulty in forecasting.

Salman Ahmed, head of the Global Macro and Asset Allocation Department at Fidelity International, stated that the Federal Reserve cut interest rates by 0.25% as expected, lowering the federal funds rate target range to between 4% and 4.25%. Looking ahead, the bank expects the Fed to cut rates twice more this year before pausing, and the Fed's future reactions are likely to become more unpredictable. In addition, recent comments by US Treasury Secretary Mnuchin and others indicate that the government hopes for broader reforms at the Fed. All of these messages suggest that the Fed's future reactions may be significantly different from the past, so attention will need to be focused not only on policies, but also on understanding the political situation driving those policies.