The timing of Federal Reserve interest rate cuts increasingly hinges on whether inflation can ease meaningfully during the second half of the year. According to Seema Shah, Chief Global Strategist at Principal Asset Management, current economic data hasn't provided sufficient justification for the Fed to cut rates yet. The robust labor market remains a key reason policymakers are holding rates steady, as a strong employment backdrop gives them room to maintain restrictive policy. However, Shah notes that once tariff impacts begin to fade, the price picture should improve, potentially paving th