Rothschild Wealth Management Executive: The Federal Reserve is expected to make its next rate cut as early as June

According to a report by Golden Finance, Bastian Freitag, the head of the German fixed income department at Rothschild Wealth Management Company, predicts that the Federal Reserve will stand pat this week and the earliest window for a rate cut would be in June. In his report, Freitag stated that inflation continues to stagnate above the Fed's 2% target and this sideways trend may continue. The punitive tariffs already imposed by the U.S. government and those yet to be levied could keep pushing up prices.

Freitag said, "Meanwhile, we have observed an increase in inflation expectations based on surveys which reduces room for premature rate cuts by the Fed." He expects that there will be rate cuts in June and September as well as in Q1 2026.