ANZ Research economists wrote in a report that the Fed may cut interest rates by another 150 basis points this cycle after cutting rates by 50 basis points overnight. They noted that the Fed's priority is to ensure that economic activity and the labor market remain stable while inflation continues to ease sustainably. Powell hinted that if some employment and inflation data are released at the July meeting, the easing cycle will have already begun by then.
Analysts said the overnight 50 basis point rate cut is to ensure that the Fed does not fall behind the curve. ANZ expects the Fed to cut interest rates by 25 basis points in consecutive meetings, for a total of 200 basis points in this cycle. (Jinshi)