ANZ: The Federal Reserve will cut interest rates by 200 basis points in this round of easing

ChainCatcher message, as people widely expect the Federal Reserve to cut interest rates at next week's policy meeting, Brian Martin, the Chief Economist for G3 at ANZ, stated that he anticipates the Federal Reserve will cut rates by 200 basis points during the upcoming easing cycle. He mentioned that the underlying financial and economic conditions in the U.S. do not imply that the easing cycle will begin in a more forceful manner.

However, he added that if there is a substantial deterioration in the labor market conditions, then accelerating the pace of easing would be reasonable. ANZ expects that the forecasts for 2024 and 2025 in the FOMC dot plot will be revised downward, as committee members anticipate that more rate cuts will be needed during this period. (Jin Shi)