Wolfe Research: The Federal Reserve is unlikely to raise interest rates this summer

Glonhui March 24th｜Wolfe Research analyst Stephanie Roth stated that despite speculation in the market, the Federal Reserve is unlikely to raise interest rates this summer. Roth wrote in a report to clients that although the US economy should remain robust this year, after the recent repricing of interest rate risk, the risk is increasingly skewed to the downside. The inflation rate remains above the 2% target and overall inflation faces significant upside risk, with core inflation showing a moderately upward risk. Seasonal dynamics and the ongoing influence of artificial intelligence will make the labor market appear sufficiently weak, prompting the Federal Reserve to remain cautious.