Allspring analyst Matthias Scheiber stated that due to ongoing uncertainty surrounding tariffs and the continued strength of the U.S. labor market, the Federal Reserve has adopted a widely expected "wait-and-see" approach regarding interest rates.
The head of multi-asset solutions said, "From our perspective, the next possible window for a Fed rate cut will be in September." Allspring expects that if inflation continues to move toward the 2.0% target, the Fed may cut rates twice this year.