U.S. Economy Slows Down: Is the Fed Ready for Rate Cuts?

Recent economic data has shed light on a slowing U.S. economy, with GDP contracting in the first quarter and weak consumer spending contributing to this trend. However, a strong Treasury bond auction suggests that market concerns regarding these developments are temporary. This resilience, coupled with the possibility of two interest rate cuts by early 2026 according to current market predictions, has led investors to hope for further easing from the Federal Reserve.