---
title: "Institutions: Markets are pricing in a Fed rate cut in January, with the earliest possible rate cut in June."
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/272150849.md"
description: "A report from Founder Securities indicates that the US job market is showing a mild downward trend, with a slight improvement in the unemployment rate. This situation may lead the Federal Reserve to adopt a wait-and-see approach in January. The market is pricing in a potential Fed rate cut in January, with the earliest cut possible in June. The Supreme Court's potential ruling on IEEPA tariffs could positively impact US stocks and the dollar, while negatively affecting US Treasuries. Overall, US stocks may benefit from the AI boom and reduced tariff disruptions, particularly in resilient sectors."
datetime: "2026-01-10T10:56:00.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/272150849.md)
  - [en](https://longbridge.com/en/news/272150849.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/272150849.md)
generator: "portal-rs"
---

# Institutions: Markets are pricing in a Fed rate cut in January, with the earliest possible rate cut in June.

A research report from Founder Securities stated that the December non-farm payroll data was mixed, with the US job market generally showing a mild downward trend, but the unemployment rate showed marginal improvement, giving the Federal Reserve more reason to wait and see in January. Combined with the Supreme Court's potential declaration that the IEEPA tariffs are unconstitutional, this may be a short-term positive for US stocks and the US dollar, but a negative for US Treasuries. Data on new jobs, job vacancy rates, and hourly wage growth indicate that the US job market remained relatively weak in December, but the marginal decline in the unemployment rate was one of the few bright spots. Looking at the trends in interest rate futures and US Treasuries, the market priced in a Fed rate cut in January, with a possible rate cut as early as June. Meanwhile, the Supreme Court's potential declaration that the IEEPA tariffs are unconstitutional means that economic expectations may improve marginally, inflationary pressures may weaken, but the fiscal deficit may worsen. With the Fed in no hurry to cut rates and tariffs easing, US Treasuries face many unfavorable factors in the short term and are likely to remain at high levels. US stocks will benefit from the AI ​​boom and reduced tariff disruptions, especially in sectors affected by tariffs such as consumer staples and industry, which are more resilient. (Jinshi)

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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**