Why is the Federal Reserve still dragging its feet when the global market is eagerly awaiting an interest rate cut?

The Federal Reserve is waiting for more data to show that inflation is steadily decreasing, but excessive delays may lead to economic decline. Analysts believe that if the Federal Reserve continues to hold steady in July, a rate cut in September will be a "done deal".

wallstreetcn06:03 ET

HSBC is expected to cut interest rates by 25 basis points this week, and the US and Canada are expected to break through 1.3750 and reach 1.3900!

In the survey from July 16th to 19th, nearly three-quarters of the surveyed economists expected the Bank of Canada to cut interest rates by 25 basis points on Wednesday this week. The surveyed economists also predict that the Bank of Canada will pause its easing cycle at the September meeting, and then resume interest rate cuts in October and December. Forex analyst Saqib Iqbal pointed out that if the USD/CAD breaks through the 1.3600 support and 1.3750 resistance range, it will return to the key level of 1.3900.

FX678 Finance22:23 ET

Sentiment On The USD Fluctuates Amid Political Uncertainties

Recent developments in financial markets have significantly impacted the outlook for the USD.

Business Today22:16 ET

President Biden Dropping Out Unlikely to Materially Shift Markets -- Market Talk

In the near term, President Biden's not seeking re-election and endorsing Vice President Kamala Harris is unlikely to shift markets materially, says Piers Bolger, CIO at Infinity Asset Management.

WSJ22:16 ET

"Rate cut trade" and "Trump trade" led the entire market, small-cap stocks rose strongly and csi commodity equity index fell across the board. | Overseas major asset weekly report

The U.S. stock market continues to witness a "big shift" in the market, as investors accelerate their exit from large technology stocks. The "Trump trade" has raised concerns about inflation and pushed up the yield on U.S. long-term bonds, putting pressure on the dollar, and most commodity prices have fallen.

wallstreetcnJul 21 02:57 ET

Williams of the US Federal Reserve: Long-term economic trends in the USA support maintaining low neutral interest rates.

Federal Reserve Bank of New York President Williams pointed out that the long-term trend of the neutral interest rate level decreasing before the outbreak of the epidemic still exists.

Zhitong FinanceJul 19 21:56 ET