Pulitzer: It is expected that the Federal Reserve will cut interest rates by 25 basis points in September, with each remaining meeting this year also reducing by 25 basis points
After the global central bank annual meeting, Blerina Uruci, Chief US Economist at PwC, once again emphasized the importance of relying on data to formulate policies. The basic expectation is that the Federal Reserve will start cutting interest rates by 25 basis points at the September meeting, and plan to cut rates by 25 basis points at each remaining meeting this year. The September dot plot may reflect this expectation. Blerina Uruci stated that weaker-than-expected labor market data could lead the Federal Reserve to cut rates by 50 basis points. This would mean further increases in the unemployment rate or monthly job growth of less than 100,000. Expectations for job growth are high as government/healthcare/education sectors continue to drive employment growth. If job growth is 100,000, it would signal job losses in other interest rate-sensitive industries in the economy. However, if economic developments proceed as expected, there will be no need to cut rates by 50 basis points this year. The total rate cuts over the next 12 months are expected to range between 100 basis points and 125 basis points, while the market currently expects a 200 basis point cut
According to the VETIM app, after the global central bank annual meeting, Blerina Uruci, Chief US Economist at PwC, once again emphasized the importance of relying on data to formulate policies. The basic expectation is that the Federal Reserve will start cutting interest rates by 25 basis points at the September meeting, with plans to cut rates by 25 basis points at each remaining meeting this year. The September dot plot may reflect this expectation.
Blerina Uruci stated that weaker-than-expected labor market data could lead to a 50 basis point rate cut by the Federal Reserve. This would mean further increases in the unemployment rate or monthly job growth below 100,000. Expectations for job growth are high as government/healthcare/education sectors continue to drive employment growth. If job growth is 100,000, it would signal job losses in other interest rate-sensitive industries in the economy. However, if economic developments proceed as expected, there will be no need for a 50 basis point rate cut this year. Over the next 12 months, the total rate cuts are expected to range between 100 and 125 basis points, while the market currently expects a 200 basis point cut