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Analyst: Federal Reserve may restart rate-cut cycle in September
Summary: According to sources, analysts at Julius Baer Bank reported that the Federal Reserve may restart the rate-cut cycle at the September FOMC meeting. They stated that weakening economic prospects indicate the Fed will implement looser monetary policy in the second half of the year. They added that uncertainty surrounding inflation after tariff hikes, as well ...
According to sources, analysts at Julius Baer Bank reported that the Federal Reserve may restart the rate-cut cycle at the September FOMC meeting. They stated that weakening economic prospects indicate the Fed will implement looser monetary policy in the second half of the year. They added that uncertainty surrounding inflation after tariff hikes, as well as political pressure from President Trump to cut rates, hindered a rate cut this month.
They noted that stagnant private consumption and reduced investment plans after July (indicating softening demand) will prove that despite inflation being above target, easing the restrictive policy stance is reasonable.
