You can expect the Federal Reserve to make two more 1/4-point cuts in interest rates, ING says, noting that it left monetary policy unchanged in a range between 3.5% and 3.75%.

But, ING said, the accompanying statement and press conference suggested the Fed is more confident that the policy easing cycle is close to a conclusion. "The latest inflation numbers confirm that tariffs are not having the immediate impact on prices that most feared. That is not to say we can’t rule out that it may lead to higher prices eventually. But the fact it is coming through so slowly gives more opportunity for falling energy costs, slowing housing rents and weaker wage growth to mitigate and allow inflation to continue trending down towards 2%," ING said in a note to clients.