Analysts: The Feds current policy deadlock is likely to continue

Odaily News Eric Winograd, an analyst at Alliance Bernstein, said the latest inflation data did not reduce the uncertainty caused by tariffs and is likely to keep the Fed on the sidelines. He said that the slight decline in the housing price index shows that the underlying trend of lower inflation remains unchanged. But the price increases of some goods that may be affected by import tariffs have accelerated. In fact, if it werent for the uncertainty related to tariffs, I think the Federal Open Market Committee (FOMC) would have enough confidence in this trend and would have already started to cut interest rates, Winograd said. He also said that the current policy deadlock may continue until the situation becomes clearer. (Jinshi)