Adrian Cooper, CEO and chief economist of Oxford Economics, said: Our expectation is that the Federal Reserve will begin to cut interest rates in the second half of this year, perhaps in September. However, this largely depends on changes in potential inflation, especially relative to wage growth. In recent years, labor inflation expectations have risen rapidly, which has surprised the Federal Reserve and many central banks. This means that workers are not only seeking higher wages to compensate for past higher-than-expected inflation, but also seeking higher wages because they believe that inflation may remain high. I think the Federal Reserve wants to see decisive evidence that the process of slowing down inflation will continue, not only overall inflation, but also core inflation will return to the level of 2%, and then prepare for a significant interest rate cut.