Seema Shah of Xin'an Fund Management said that the Federal Reserve has fallen into a situation where there is almost no solution, and the two missions — maximizing employment and stabilizing prices — may go against each other. However, the chief global strategist said that highly uncertain government policies will determine the timing and extent of these changes. She said that recent news about Trump shows that they have taken a tough stance on the Sino-US tariff negotiations, which further highlights the embarrassing situation the Federal Reserve is in. Shah said that under these circumstances, the Federal Reserve can only choose to stand still. “Interest rate cuts will be necessary, but it is increasingly apparent that the Fed will have to wait until the end of the third quarter before the window of opportunity opens.”

Seema Shah of Xin'an Fund Management said that the Federal Reserve has fallen into a situation where there is almost no solution, and the two missions — maximizing employment and stabilizing prices — may go against each other. However, the chief global strategist said that highly uncertain government policies will determine the timing and extent of these changes. She said that recent news about Trump shows that they have taken a tough stance on the Sino-US tariff negotiations, which further highlights the embarrassing situation the Federal Reserve is in. Shah said that under these circumstances, the Federal Reserve can only choose to stand still. “Interest rate cuts will be necessary, but it is increasingly apparent that the Fed will have to wait until the end of the third quarter before the window of opportunity opens.”