Fed unlikely to cut rates soon as US economy holds firm, says Ed Yardeni

Ed Yardeni, President of Yardeni Research, does not expect any interest rate cuts from the US Federal Reserve anytime soon, as the economy remains strong.

“I have been in the ‘none and done’ camp,” Yardeni said, explaining that there is no need for the Fed to act right now. Data on payroll numbers and inflation indicate signs of resilience, and he believes the tariff uncertainties are unlikely to change the Fed’s wait-and-watch approach.

Also Read: Why Fed's Powell may defy Trump and not cut interest rate on May 7

Yardeni expects the trade tensions to ease, especially as President Trump appears to be backing off from imposing fresh tariffs. He expects the US to pursue non-binding agreements instead of formal treaties with several countries, including India.

“Trump is going to declare victory,” Yardeni said, suggesting the president may sign symbolic deals to claim progress on fair trade. However, talks with China remain uncertain. While formal negotiations haven’t started, there are signs that both sides want to de-escalate and re-engage.

Despite recent market volatility, Yardeni maintains a cautiously optimistic outlook for the US stock market. He has revised his year-end target for the S&P 500 to 6,000, down from an earlier forecast of 7,000. “I think we are going to recover, but the year overall will be flat compared to last year,” he said.

Also Read: Fed’s steady hand has kept US economy stable amid global uncertainty: Oppenheimer’s John Stoltzfus

Commenting on Warren Buffett’s retirement, Yardeni called it the end of a remarkable era. He praised Buffett as “one of the greatest value investors” and stated that Buffett’s large cash pile reflects his discipline in the face of high market valuations.

For the entire interview, watch the accompanying video

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