The Federal Reserve Expects a Total Rate Cut of 75 Basis Points by Year-End as Powell Adopts a More Dovish Tone

According to ChainCatcher, citing Jintou, Nationwide’s Chief Economist Kathy Bostjancic stated that the Federal Reserve is expected to cut rates by a total of 75 basis points by the end of the year. She noted that Powell has adopted a noticeably more dovish tone and has left the door wide open for a rate cut in September, believing that downside risks to employment are rising significantly. This supports her view of a 25 basis point rate cut next month, and she anticipates further weakening in the labor market, with inflation increases being only moderate and temporary.