Professor Chang Ma Accepts an Interview with Shanghai Securities News to Discuss US Inflation and Interest Rate Cut | Info

Release time：2025-03-14    

FISF MARCOM  March 14^th 2025 18:08  Shanghai

On March 12^th 2025 EST, statistics released by the US Department of Labor shows that the US consumer price index (CPI) in February was lower than expected in all aspects. Specifically, the US CPI in February witnessed a year-on-year increase by 2.8%, lower than the market expectation of 2.9%; and the core CPI in the same month had a year-on-year increase by 3.1%, also lower than the market expectation of 3.2%.

With the inflation rate falling behind expectation, concerns about market stagflation was slightly eased, but the risk of rising inflation has not been completely eliminated. Chang Ma, Associate Professor in Finance at FISF, accepted an interview of Shanghai Securities News to discuss this development and related topics.

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Inflation has come down but still bears risks, interest rate cut of Federal Reserve “stops and goes”

March 14^th 2025  Friday

As for the US economy, Professor Chang Ma mentioned that the market was generally optimistic about the US economic trend at the beginning of the year, expecting it to achieve stable and improved growth in the context of declining inflation and continuation of the interest rate cut cycle. However, quite a lot of uncertainties have been brought to the US economy due to Trump’s policies. On one hand, his bold revolution within the country would exert “pains” on the US economy. Such uncertainties were a great shock to economic fundamentals while causing increased market volatility at the same time. On the other hand, with the disturbance of the tariff policies, an upward trend was anticipated by the market in the US inflation.

“Though in the latest data the US CPI was going downwards unexpectedly, such data was only made upon past conclusions, without fully reflecting the impact of the latest tariff policies.” said Chang Ma.

When it came to future monetary policy path of the Federal Reserve, Ma held that the current situation was quite “tough”. At a time full of uncertainties in US government policy, the US Federal Reserve might remain prudent and “keep an eye along the way”.

Professor Introduction

Chang Ma

Associate Professor in Finance at FISF