Analyst: US Economy Remains Robust, Only One Rate Cut Expected This Year

According to a report by Jinse Finance, Matthias Scheiber, Head of Multi-Asset at Allspring Global Investments, stated that U.S. fiscal policy remains accommodative, and the passage of Trump’s “Beautiful Act” will undoubtedly add further stimulus. It is expected that in its first year of implementation, the act could contribute up to 1 percentage point to U.S. economic growth, with the marginal effect gradually diminishing thereafter. From a macro perspective, the U.S. economy still appears robust: the unemployment rate remains stable, real wages continue to rise, and corporate earnings are resilient. Unless there is a significant shock to the labor market or renewed concerns about the Federal Reserve’s independence, we expect the Fed to maintain a wait-and-see stance, with the possibility of one rate cut this year. The future direction of policy will largely depend on the balance between inflation and growth.