In the latest economic situation, the policy direction of the Federal Reserve has attracted widespread follow. A senior official recently stated that the Fed may need to take action in response to the slowing economic growth. The official believes that, rather than waiting and observing, timely adjustments to the Intrerest Rate policy may be a better choice. He personally tends to think that it may be appropriate to implement two rate cuts within this year.

However, this outlook is not set in stone. If inflation rises due to factors such as tariffs, the Fed may pause its rate cut plans and even consider the possibility of raising rates. This statement overall presents a moderately dovish stance, suggesting support for implementing rate cuts as soon as possible if inflation does not show a significant rebound.

It is worth noting that several members of the Federal Open Market Committee ( FOMC ) have expressed similar views. In addition to this official, three other FOMC members also tend to support a prompt rate cut. However, this official also emphasized that if inflation rebounds in the future, his stance may shift from dovish to hawkish. Thus, it can be seen that the trend of inflation remains a key factor influencing the Fed's policy decisions.

Market expectations for interest rate cuts are also rising steadily. According to data from the Chicago Mercantile Exchange (CME), traders generally believe that the probability of the Fed cutting interest rates in September has reached 95.1%. This data reflects the strong expectations of market participants regarding the Fed's imminent actions.

Overall, although the remarks from Fed officials have injected some expectations for interest rate cuts into the market, the actual policy direction will still depend on future economic data performance, especially changes in the inflation rate. Investors and economists will continue to closely follow every move of the Fed, as well as various economic indicators that may impact its decisions.