Analysts: The Federal Reserve is unlikely to cut interest rates in the near future

Tim Murray, strategist at Rowe Price, said the Fed will continue to hold its ground until tariff-related uncertainty subsides or the labor market deteriorates significantly. Murray does not expect a "Fed put option", in which the Fed cuts interest rates to rescue the market, to occur anytime soon. Fed policymakers know that lowering interest rates is not a cure for uncertainty. The Fed is also reluctant to cut rates, given the risk that tariffs will push up inflation. Murray expects the Fed to stick to its data-dependent approach, avoid providing forward guidance and avoid sending any "political message".