Moody's: The Federal Reserve may cut interest rates by 25 basis points in July
According to its latest analysis, global rating agency Moody's expects the Federal Reserve to start cutting interest rates by 25 basis points at the meeting on July 30-31. Madhavi Bokil, Senior Vice President of Moody's Ratings, stated that CPI data confirms our view that the higher-than-expected inflation data in the first quarter was one-off. The rapid cooling of the labor market indicates that the impact of tightening monetary policy is increasing. If the FOMC decides to keep rates unchanged at the July meeting, the labor market may further weaken, increasing the possibility of a significant 50 basis point rate cut in September. The agency expects the Fed to cut rates by 50-75 basis points this year and to further reduce by 100-125 basis points by 2025
July 16th, according to its latest analysis, Moody's, a global rating agency, expects the Federal Reserve to start cutting interest rates by 25 basis points at the meeting on July 30-31 at the earliest. Madhavi Bokil, Senior Vice President of Moody's Ratings, stated that CPI data confirms our view that the higher-than-expected inflation data in the first quarter was a one-off event. The rapid cooling of the labor market indicates that the impact of tightening monetary policy is increasing. If the FOMC decides to keep interest rates unchanged at the July meeting, the labor market may further weaken, increasing the possibility of a significant 50 basis point rate cut in September. The agency expects the Fed to cut rates by 50-75 basis points within the year and to further reduce by 100-125 basis points by 2025