The Federal Reserve is expected to cut interest rates more than anticipated this year, with a weak labor market being the main reason

According to a report by Jinshi, Roger Lüger, head of multi-asset solutions at Swisscanto/ZKB, stated in a report that the Federal Reserve's rate cuts this year may exceed current expectations, mainly due to a potential weakening of the labor market.

The Federal Reserve maintained its policy rate this week and expects one rate cut this year. Lüger anticipates rate cuts in September and December, while the money market currently expects the rate cut to be less than one this year.