Bank of Mitsubishi UFJ economist Derrick Halpen said that the Federal Reserve's next policy action is likely to cut interest rates in 2027. He said on Monday that as the Trump administration pushes for an agreement with Iran, oil prices are expected to fall, which will create more policy space for Federal Reserve Chairman Walsh without the need to raise interest rates. “I think the current administration is increasingly concerned about the level of US interest rates and the steady upward trend in interest rates.” He also said that there may also be concerns about higher US bond yields behind the joint action of the US and Japan to boost the yen.

Bank of Mitsubishi UFJ economist Derrick Halpen said that the Federal Reserve's next policy action is likely to cut interest rates in 2027. He said on Monday that as the Trump administration pushes for an agreement with Iran, oil prices are expected to fall, which will create more policy space for Federal Reserve Chairman Walsh without the need to raise interest rates. “I think the current administration is increasingly concerned about the level of US interest rates and the steady upward trend in interest rates.” He also said that there may also be concerns about higher US bond yields behind the joint action of the US and Japan to boost the yen.