Jefferies global economist Mohit Kumar noted in a report that as tariff effects fade and the Trump administration shifts focus to domestic issues, U.S. inflation faces downside risks in the second half of the year. He also projected a "moderate slowdown" for the U.S. economy. Kumar stated that if these expectations materialize, the Federal Reserve might implement three interest rate cuts instead of two. Data from the London Stock Exchange Group shows that U.S. money markets are currently pricing in approximately 60 basis points of rate reductions this year.