Matthias Scheiber, analyst at Allspring, said the Fed had taken what was widely expected to be a "wait and see" approach to interest rates as uncertainty over tariffs persists and the US labour market remains strong. "From our perspective, the next window for a possible rate cut is September," said the head of multi-asset solutions. Allspring expects the Fed could cut rates twice this year if inflation continues to fall towards its 2.0 per cent target.
Federal Reserve Chairperson Jerome Powell: Federal Reserve policy is not fixed; it can remain restrictive if inflation progress stalls, or it can ease policy if the labor market is unexpectedly weak or inflation falls more than expected.