ANZ: Fed Could Cut Rates by 150 Basis Points This Cycle
ChainCatcher reports that ANZ Bank Research economists wrote in a report that the Federal Reserve could cut rates by another 150 basis points this cycle after cutting them by 50 basis points overnight. They note that the Fed's primary goal 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 would have already begun by then.
Analysts say the overnight rate cut of 50 basis points was designed to ensure that the Fed doesn't fall behind the curve. ANZ expects the Fed to cut rates by 25 basis points over several consecutive meetings, totaling a 200 basis point cut in this cycle. (JinShi)