[Fed Mouthpiece: The Fed Expected to Pause Rate Cuts, Path to Resuming Cuts Remains Unclear] 'Fed Mouthpiece' Nick Timiraos: Federal Reserve officials are expected this week to hold interest rates steady for the first time since three consecutive rate cuts starting last September. The question is, what circumstances would prompt the Fed to resume rate cuts? The answer depends on which risk materializes first: a collapse in the labor market or inflation significantly falling back to the 2% target level. Since the last meeting in December, neither has occurred. As a result, even with significant political pressure from the White House, the committee remains in a wait-and-see mode. Most officials still believe rate cuts may be possible later this year, but there is disagreement over when the data will support such a move.