Mars Finance Reports: Analyst Predicts No Significant Fed Rate Cut

According to Jin10 reports, Birgit Henseler, an analyst at the German Central Cooperative Bank, stated that while the money market is divided on whether the first Fed rate cut will be 25 or 50 basis points, several factors suggest that the Fed should not take drastic action.

In a report, she wrote, "Neither labor market data nor the recently published inflation rate indicate a need for a significant rate cut." Henseler explained that the labor market suggests a slowing economy, not a recession, and core inflation has recently proven more persistent than many market participants anticipated due to rising housing and other service costs.