Viewpoint: The Federal Reserve is expected to cut interest rates by a cumulative 75 basis points by the end of the year, and Powell's tone is more dovish

ChainCatcher news, according to Jinshi reports, Nationwide Chief Economist Kathy Bostjancic stated that the Federal Reserve will cumulatively cut interest rates by 75 basis points before the end of the year.

She pointed out that Powell has adopted a noticeably more dovish tone and has significantly opened the door for a rate cut in September, believing that the downside risks to employment are rising significantly. This supports her judgment of a 25 basis point rate cut next month and anticipates that the labor market will weaken further, with inflation rising only moderately and temporarily.