According to the Zhitong Finance APP, Christian Scherrmann, Chief U.S. Economist at DWS, commented on the January meeting of the Federal Open Market Committee (FOMC), stating that looking ahead, the inflation data for the first quarter in the U.S. is expected to improve, and there are still opportunities for interest rate cuts in March and June. However, the current risk leans towards a reduction in the magnitude of rate cuts rather than an increase. The Federal Reserve has cumulatively raised interest rates by 100 basis points and is in a favorable position to either advance or retreat, but the chances of further rate hikes are quite low at the moment.
As expected, the Federal Reserve maintained interest rates at the January FOMC meeting. Fed Chair Jerome Powell stated at the post-meeting press conference that the removal of phrases like &#34;further easing of inflation&#34; from the statement was merely an adjustment and should not be seen as a policy signal. Powell reiterated that inflation has clearly declined, and the labor market does not pose price pressures.
However, the Federal Reserve is not in a hurry to adjust monetary policy, emphasizing that there is no set timetable and that they will respond flexibly to the situation. He stressed that the conditions for further rate cuts are sustained improvements in inflation data or a significant weakening of the labor market. Currently, he believes that monetary policy remains at an effective tightening level, which is an appropriate strategy. Regarding the potential impact of political factors, he stated that it is necessary to wait for relevant policies to &#34;take shape&#34; before assessing their impact on monetary policy.
Federal Reserve officials seem to be seeking observational space. The market has long anticipated that the &#34;final mile&#34; of cooling inflation will take time, and recent inflation and employment data also support a slowdown in the pace of easing policies. Political uncertainties related to tariffs, spending, and immigration may all push prices higher, making a more cautious and data-focused approach reasonable

DWS Chief U.S. Economist Christian Scherrmann expects positive inflation data for the first quarter in the U.S., with opportunities for interest rate cuts in March and June still present, but the magnitude of the cuts may be reduced. The Federal Reserve maintained interest rates at the January FOMC meeting, with Chairman Powell stating that inflation has eased and the labor market is not under pressure; future rate cuts will depend on improvements in inflation or a weakening labor market. The market anticipates that cooling inflation will take time, and political uncertainty may drive up prices, requiring cautious responses

- DWS Chief U.S. Economist Christian Scherrmann commented on the January FOMC meeting, predicting improved inflation data for Q1 and potential rate cuts in March and June, though risks lean towards weaker cuts.  
- The Federal Reserve has raised rates by 100 basis points and currently sees low chances for further increases, maintaining rates steady in January as expected.  
- Fed Chair Powell noted that the removal of certain phrases from the statement was merely an adjustment and emphasized that monetary policy remains appropriately tight, with flexibility to respond to evolving conditions.

Zhitong

DWS: Expects U.S. inflation data to improve in the first quarter; opportunities for interest rate cuts in March and June still exist, but the magnitude is expected to weaken