Analyst: Regardless of Powell's speech, US interest rates will fall.

Federated Hermes Chief Market Strategist, Phil Orlando, stated that the Federal Reserve may schedule six 25 basis points rate cuts over the next 18 months, in order to bring the federal funds rate down to 3.0% by the end of 2026. He added that the US labor market has significantly slowed down, and inflation conditions have improved significantly compared to three years ago. Orlando said that with Stephen Milan joining the Federal Reserve Board and a new chair taking over from Jerome Powell by May, the direction of interest rates over the next 18 months is downward.