Analyst: It is expected that the Fed will cut interest rates twice in 2025, and the market may be overly optimistic.

The analyst at Myleser stated that the currency market may be overly optimistic about the Fed's interest rate cuts this year. They indicated that Myleser is sticking to its prediction of two interest rate cuts by the Fed in 2025. They said: "But we now expect the next easing to come in July, mainly due to the ongoing strength of the US labor market." Data from the London Stock Exchange shows that the currency market expects three interest rate cuts in 2025. These analysts predict that Fed Chairman Powell will focus on price stability at Wednesday's press conference. "Especially the increasingly heated inflation expectations are currently causing concern for monetary authorities." The analyst from this German bank stated that interest rate cuts are only possible when the weakening of the US economy is reflected in the labor market.