Polls Contradict Trump as Fed Rate Cut Outlook Remains Uncertain

Glonghui, February 26｜According to Yicai, US President Trump delivered a record-length State of the Union address on Tuesday night. Against the backdrop of “affordability” becoming a current political buzzword, he announced several proposals aimed at lowering prices. However, an exclusive survey conducted this week by polling agency YouGov shows that about 80% of respondents believe the situation has not improved. Consumers listed grocery prices, insurance, prescription drug prices, rent, and saving for home purchases as the main challenges to their cost of living. For the Federal Reserve, price issues are also a key factor limiting further interest rate cuts. The minutes of the Federal Reserve meeting released last week reflected disagreements among officials regarding the future path of monetary policy, with debates focusing on sticky inflation and a weakening labor market. The minutes showed that most members believe it is appropriate to pause rate cuts for now, and that further cuts within the year are only possible if inflation cooperates; some officials indicated that another rate hike cannot be ruled out. Several Federal Reserve officials reiterated a cautious stance in speeches this week. Kansas City Fed President Jeff Schmid continued to express his concerns about inflation on Wednesday. Chicago Fed President Austan Goolsbee said on Tuesday that the current consumer economy is robust and the labor market is stable, which means the Federal Reserve should focus primarily on tackling high inflation.