Amidst widespread expectations that the Federal Reserve will cut interest rates at its policy meeting next week, Brian Martin, head of G3 Economics at ANZ, said he expects the Fed to lower rates by 200 basis points in the upcoming easing cycle. He said that the potential financial and economic conditions in the U.S. do not suggest that the easing cycle will begin in a more forceful way.

However, he added that a faster pace of easing is reasonable if labor market conditions deteriorate significantly. ANZ expects the forecasts for 2024 and 2025 in the FOMC dot plot to move lower as policymakers anticipate needing to cut rates more during this period. (JinShi)