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fed signals potential policy easing amid inflation and growth concerns

The Federal Reserve is poised to ease monetary policy to bolster economic growth, despite rising inflation concerns linked to tariffs. While interest rates remain unchanged at 4.25% to 4.5%, analysts at Morgan Stanley anticipate a 25-basis point cut in June, emphasizing the Fed's focus on downside risks to economic activity over inflation. However, a cautious approach may be necessary, as persistent inflation could complicate future rate cuts.
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