The Fed's decision on whether to cut interest rates will depend on the following data: Inflation data: Especially the core PCE inflation rate, recent data shows that its annual rate dropped from 3.5% in October 2023 to 2.6% in May 2024. Further decline will enhance the expectation of interest rate cuts Economic rise and employment data: If economic activity and the job market show signs of slowing down, the Fed may consider cutting interest rates to stimulate the economy. Market expectations and the Interest Rate futures: The federal funds Interest Rate futures market expectations indicate that there may be multiple interest rate cuts in the future. These data collectively influence the Fed's decision.