[Outlook-in-Five] The Fed resumes rate cuts

Speaker: Mansoor Mohi-Uddin, Chief Macro Strategist, Bank of Singapore As widely expected, the Federal Reserve (Fed) has resumed cutting interest rates for the first time this year, lowering the fed funds rate by 25 basis points to 4.00-4.25%. This move aims to support a slowing US labour market amid rising downside risks to employment, even as inflation remains stubbornly above the Fed’s 2% target. Updated forecasts from the Fed show GDP growth slowing significantly in 2025, influenced in part by ongoing US tariffs.Notably, the Fed continues to maintain its independence from political pressures, with Chairman Powell describing the recent cut as a cautious “risk management” step rather than the start of a broad easing cycle.For more market insights, go to ⁠⁠⁠⁠⁠⁠⁠Bank of Singapore Insights⁠⁠⁠⁠⁠⁠⁠ to check out our Chief Investment Office's research publications.