US Fed to keep rates on hold until economic situation becomes clearer — Bloomberg

US Federal Reserve (Fed) officials say rates will be on hold until the White House resolves questions around tariffs, immigration, and taxes. Markets expect the central bank to lower borrowing costs in September at the earliest as labor market and inflation are stable. 

Meanwhile, investors are awaiting the regulator's new economic forecasts this week. Seema Shah of Principal Asset Management believes predictions of unemployment rising above 4.4% could mean the US central bank will ease monetary conditions before the fourth quarter. At the same time, an increase in the projected inflation rate could reduce the number of cuts expected this year from two to one, says Deutsche Bank economist Matthew Luzzetti.

A Bloomberg survey of experts shows that 42% of respondents forecast borrowing costs to remain unchanged until there are concrete signs of weakness in the US economy. Julia Coronado, founder of MacroPolicy Perspectives, projects the Fed will cut rates in October or December this year in response to a slowdown in the US labor market.